Currency Futures Trading Day Trading Review Thursday 1/28/10
Posted by: Richard Estrada // Category: Currency Futures Trading
Once again Currency Traders day trading currency futures found themselves in some strong intra-day currents. The British Pound and Canadian Dollar futures markets both rallied early only to find stiff resistance and fall back below there early lows. The Euro Currency once again sold off after climbing over .0150 ticks from yesterday evening’s steep drop. The Japanese Yen did sell off early, but by the close the bulls were back in control.
Today were going to assess the weekly charts in the currency futures market starting with the British Pound (see chart below).
You can see by looking at the weekly chart (above) that the British Pound is currently trading within a bear flag formation, in which the bottom of this technical formation is in very close proximity to the 25-day moving average on the daily chart. A break below the bottom of this technical formation and that might very well bring the last weekly cycle low (1.5702) into play.
The weekly chart of the Canadian Dollar (see chart below) clearly illustrates a break below the 13-week moving average (blue – .9469). This average has been a pivotal area of technical support since early last year and a close below this average tomorrow and we might see the bulls run.
The Euro Currency bears have been able to push the Euro Currency through some pretty stiff technical support this week and might be poised to make one more strong downward push tonight or Friday. The weekly chart of the Euro Currency (see chart below) shows that the next possible downside target is the 50% retracement line, which is 1.3800. The question is do the bears have the technical strength to push the Euro Currency that low, or will the bears look to counter as bulls take profits on Friday?
The weekly chart of the Japanese Yen (see chart below) shows that the 4-week moving average (red – 1.1020) appears poised to cross back above the longer term 13-week moving average (blue – 1.1087). Because the Japanese Yen is trading above both these averages, then it’s my technical opinion that these average will be pivotal technical areas and good gauges of technical momentum in the coming weeks.
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There is significant risk of financial loss in trading futures and trading futures is not suitable for everyone. You should carefully consider whether such an investment is right for you in light of your financial condition.
