Currency Futures Trading: Day Trading Futures Recap 3/16/10
Posted by: Richard Estrada // Category: Currency Futures Trading
For currency traders day trading futures who were long or short prior to the FOMC meeting, I hope you got away unscathed. Now with that announcement behind us we can get back to analyzing the technicals. Once again we have seen some explosive moves in the currency futures market as well as some interesting consolidating, which might make for some interesting breakouts at some point this week.
The daily chart of the June 2010 British Pound Futures contract (see chart below) clearly shows that the bulls did defend the bottom of the bear flag technical formation (outlined in green) last night and are now testing the top of the same formation. So, if you are considering a short position just be aware of the potential upside breakout, which in my opinion could trigger technical upside momentum. The 25-day moving average (blue – 1.5284) is an area I will consider a pivotal area of technical resistance.
The daily chart of the June 2010 Canadian Dollar Futures contract (see chart below) shows the bulls continue to hold this market above the 5-day moving average (red – .9822), which has been a pivotal area of technical support. A break below this average and currency traders might look to sell it, but I don’t see any technical resistance within close proximity, so sellers beware.
The daily chart of the June 2010 Euro Currency Futures contract (see chart below) did hold above the 25-day moving average (blue – 1.3633) and is continuing its’ push upward. As the Euro Currency gets up near last week’s high (1.3796) we might see a domino type effect. What I mean is that if one high gives way we might see a few highs give way, because these highs are in such close proximity to one another.
The daily chart of the June 2010 Japanese Yen Futures contract continues to consolidate near the 5, 25 and 75-day moving averages. You will also notice that the last cycle low was at the bottom of a bear flag technical formation (outlined in green), which makes this area in my opinion, that much more technically important.
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Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing short-term trading strategies will result in profits or limited losses. There is significant risk of financial loss in trading futures; therefore you should carefully consider whether trading futures is right for you in light of your financial condition
Tags: British Pound futures, Canadian Dollar futures, Curency Futures, Currency Futures Trading, currency traders, day trading futures, Euro Currency futures, Japanese Yen futures
