Currency Futures Trading

For currency traders speculating in the most aggressive markets in the world, trading has begun and battle lines are being redrawn. Last week currency day traders saw the British Pound, Canadian Dollar and Japanese Yen test or run through previous areas of technical resistance, while the Euro Currency tumbled. Will currency traders once again see the same futures markets rally and the same ones decline, or will currency traders trading currency futures see markets reverse?

The weekly chart of the British Pound futures market (see chart below) shows that the bulls have been able to hold the market above the 52-week moving average (green – 1.5794), which I consider a pivotal area of technical support. Also notice that the British Pound is trading within a sideways channel (between 1.5702 & 1.7043),which currency traders might continue to see over the coming weeks.

A closer look at the British Pound (see daily chart of the March 2010 British Pound futures contract below) illustrates a strong rally supported by the 5-day moving average (red – 1.6320). A run pass 1.6404 and technically there is nothing standing in the way until 1.6700.

The Canadian Dollar like the British Pound is pushing higher, but has yet to break through the last cycle high of .9798 (see weekly chart of the Canadian Dollar below). The weekly chart also illustrates rather stiff technical resistance between .9998 and 1.0298.

By looking at the daily chart of the March 2010 Canadian Dollar futures contract (below) we will notice that the 5-day moving average (red – .9741) has been acting as a pivotal area of technical support since mid December. A break and close back below this average and currency traders might see the bears make a downward push.

The weekly chart of the Euro Currency (see chart below) shows that the bears have been in control since December of 2009. The current pause on the weekly chart appears very similar to the pause seen on the daily chart and both of these technical formations could be interpreted as bear flag formations, which are pauses in prevailing downward trends.

The daily chart of the March 2010 Euro Currency futures contract (see chart below) show’s that the market is currently trading within a bear-flag formation (outlined by black trend lines). A break below this formation and currency traders may see a very severe sell-off.

The weekly chart of the Japanese Yen market (see chart below) clearly illustrates that the bulls were once again able to hold the line in the vicinity of the 52-week moving average (green – 1.0679). This average has been a pivotal area of technical support since late 2007.

Looking at the March 2010 Japanese Yen futures contract (see chart below) shows that the bulls were able to push the market back through the 25-day moving average (blue – 1.0950), which the bulls hadn’t been able to do since early December of 200. The question for currency traders trading the Japanese Yen is a simple one in my opinion. Is this rally for real, or is it an opportunity to get short.

To get up to the minute strategic analysis and a unique perspective in the Currency Futures Market simply join me in my LIVE TRADING ROOM. I will break down the Currency Futures Market in unbelievable detail and across multiple time frames. If you are serious above currency futures trading and want a no nonsense approach to the most aggressive markets in the world then simply join me in my LIVE TRADING ROOM.

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.   

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