Currency Futures Trading

Currency Futures Trading: Commodity Traders Update 8/10/10

Richard Estrada — Tue, 10 Aug 2010 16:39:59 +0000

As commodity traders wait for the FOMC announcement, the currency futures markets are really swinging around. The question for commodity traders is this because of something commodty traders are anticipating, or is the intra-day volaitilty because the currency futures markets are a little thin and volatility tends to be exaggerated when liquidity is shallow? Let’s take a step back and look at weekly charts of the currency futures markets. Remember currency futures trading is not an exact science and as a commodity trader you can only speculate on direction; there are no “holy grail” secrets when applying technical analysis to the commodities markets.

The weekly chart of the British Pound Futures (6B) contract (see chart below) shows that the bulls were able to blow through three key technical areas. These areas in my opinion were pivotal areas of technical resistance and indicate that the rally in the British Pound Futures is technically credible. You will notice that the technical structure of the British Pound weekly chart has changed from lower lows and lower highs. The question for commodity traders now is can the bulls hold the line in the vicinity of the 4-week moving average (red – 1.5708), or will we see a bigger pullback that could even be considered a long-squeeze?

The weekly chart of the Canadian Dollar Futures (6C) contract (see chart below) shows that the bulls failed to onto the technical momentum after breaking out of a technical pennant formation (outlined in blue). You can see that the 3-moving averages I illustrate have all converged back within the pennant formation and are in very close proximity to the price of the Canadian Dollar. What does this mean? Technically I interpret this kind of technical structure as the quiet before the storm. A breakout either way may be an indication of direction over the next few months.

The weekly chart of the Euro Currency Futures (6E) contract (see chart below) shows that the bulls pushed through the 38.2% fibonacci level last week, but are now back at this level. You can see that the 4-week moving average (red – 1.3084) has been a pivotal area of technical support and might be and area to watch if you are looking for technical weakness.

The weekly chart of the Japanese Yen Futures (6J) contract (see chart above) shows that the bulls are getting close to testing a significant technical high (1.1817), while holding the Japanese Yen above the 5-day moving average (red – 1.1590). The question going forward is will we continue to see this, or will the 5-day moving average give way and technically entice sellers to jump in for a quick ride? Are there other areas of technical support and resistance that might be seen when utilizing technical analysis in other time frames? For a complete technical review of the currency futures market utilizing some of the most advanced analytical software, please join me and other professional traders for detailed technical analysis in the currency futures market.

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If you are unable join us in the daytime, then join us for our nightly technical recap, update and outlook of the currency futures market. Simply click on the link below and get immediate access to our trading room.

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Opinions Expressed are subject to change without notice. I make no promises or guarantees implied of otherwise that utilizing technical analysis in the currency futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures; therefore you should carefully consider whether such an investment is right for you in light of your financial position.

Technorati Tags: 6B, 6C, 6E, 6J, British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, currency traders, Euro Currency futures, Japanese Yen futures, Technical Analysis

Currency Futures Trading: Commodity Traders Update 8/4/10

Richard Estrada — Wed, 04 Aug 2010 14:37:59 +0000

Commodity traders continue to hold currency futures markets above key areas of technical support, but bulls seem to be taking a break or potentially taking some risk off the table as we get closer to Friday and the employment numbers. The question for commodity traders currency futures trading is, will the bulls make another push upward, or will we continue to see these currency futures markets pullback?

The daily chart of the September 2010 British Pound Futures (6B) contract (see chart below) shows that this market looks almost vertical with no technical resistance above. You can see that the 5-day moving average (red – 1.5808) has been an area of pivotal technical support over the last several weeks and might turn out to today’s downside target. In my technical opinion, if the British Pound Futures fell through the 5-day moving average this would be a technical indication that the bulls might be losing some technical momentum and might even entice sellers.

The daily chart of the September 2010 Canadian Dollar Futures (6C) contract (see chart below) shows that the market continues to hold above the top of a pennant technical formation (outlined in green). The top of pennant formation is also in very close proximity to the 5-day moving average (red – .9734), which in my opinion makes this area an area to pay particular attention to, espeically if you are long or thinking about getting short.

The daily chart of the September 2010 Euro Currency Futures (6E) contract (see chart below) looks very similar to the British Pound Futures. You can see that the bulls have been in complete control and that the 5-day moving average (red – 1.3140) has been a pivotal area of technical support. The question today is can the bulls again hold the Euro Currency above this average, or are the bears in position to strike?

The daily chart of the September 2010 Japanese Yen Futures (6J) contract (see chart above) shows that the bulls today seem to be running to the exit doors. After making a strong upward push today, the bears seem to have countered or maybe the bulls are just taking some profits off the table. Either situation has created a quick and steep intra-day sell-off. Are there other areas of technical support and resistance that might be seen when utilizing technical analysis in other time frames? For a complete technical review of the currency futures market utilizing some of the most advanced analytical software, please join me and other professional traders for detailed technical analysis in the currency futures market.

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Currency Futures Trading: Night Market Update 8/2/10

Richard Estrada — Tue, 03 Aug 2010 03:49:59 +0000

Another active day in the currency futures market. Commodity traders witnessed some big moves today, which we’ve come to expect when currency futures trading. The question for commodity traders now is will we see some currency markets continue to rally, or was today’s rallies a set-up for longer term bears. Let’s take a closer look at the currency futures market and see what clues we can get from today’s currency action.

The daily chart of the September 2010 British Pound Futures (6B) contract (see chart below) shows a market that is now almost vertical. I thought if the bears were going to make a stand it would have been in the vicinity of the 52-week moving average (green – 1.5685), but that gave way like melted butter to a warm knife. So, will commodity traders playing the long side look to take some profits off the table after such an explosive move, or are they (bulls) looking to punish any currency trader wanting to fade this rally?

The daily chart of the September 2010 Canadian Dollar Futures (6C) contract (see chart below) clearly shows that the bulls were able to breakout out of a pennant technical formation (outlined in green), which is considered technically bullish. The question now is will the bulls be able to hold the Canadian Dollar above the 5-day moving average (red – .9702) tonight and tomorrow, or will today’s spike bar turn out to be the high of this current rally?

The daily chart of the September 2010 Euro Currency Futures (6E) contract (see chart below) shows that the bulls are in complete control and appear to have clear sailing above. The question for currency traders trading in the Euro Currency Futures is, can the bulls hold onto the technical momentum, or is this market ripe for a steep and rapid pullback?

The daily chart of the September 2010 Japanese Yen Futures (6J) contract (see chart above) show that the market consolidated today between the high of Friday (1.1640) and the 5-day moving average (red – 1.1538). The question now is can the bulls hold the Japanese Yen Futures above this area, or will a break below this average entice sellers technically to want to sell this market? Are there other areas of technical support and resistance that might be seen when utilizing technical analysis in other time frames? For a complete technical review of the currency futures market utilizing some of the most advanced analytical software, please join me and other professional traders for detailed technical analysis in the currency futures market.

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Currency Futures Trading: Weekly Technical Preview 8/1/10

Richard Estrada — Sun, 01 Aug 2010 20:04:59 +0000

As commodity traders prepare for battle this week in the currency futures market, what clues can we get from last week’s closes? Remember, currency futures trading isn’t for the meek or garden-variety-investor and things can change very, very quickly. So remember, stay focused, be flexible and always be prepared to get the heck out of the way if things start to get bad. Now lets take a step back and look at the big picture of the currency futures market and try to determine where the pivotal battle are going to be fought this week.

The weekly chart of the British Pound (6B) Futures (see chart below) shows that the bulls broke out of a downward channel (outlined in blue), which also could be considered a bull flag formation. You will also notice that they (bulls) blew through the last cycle high (1.5470). The move above the last cycle high (1.5470) actually changes the technical structure of this weekly chart and may indicate real technical strength. You can also see by looking at the weekly chart that the bull are currently testing the 52-week moving average (green – 1.5686), which in my opinion may turn out to a great gauge of technical momentum this week.

The weekly chart of the Canadian Dollar (6C) Futures (see chart below) shows that the Canadian Dollar continues to consolidate within a pennant technical formation (outline in blue). You will also notice that the 3 different moving averages have also converged within this technical formation, which in my opinion is sometime the quite before the storm. A breakout above or below this pennant formation may dictate short-term direction.

The weekly chart of the Euro Currency (6E) Futures (see chart below) shows that the bulls are currently testing the 38.2% fibonacci retracement level. Being that this level is the only area of technical resistance that I can identify on this chart, this might turn out to be a short-term battleground between the bears and bulls with the winner determinng the next leg of the next move.

The weekly chart of the Japanese Yen (6J) Futures (see chart above) shows that the bulls ended last week strong and now appear poised to test the last weekly cycle high of 1.1817. You will also notice that the 4-week moving average (red – 1.1464) has been an area the bulls have defended over the last several weeks, which will make this area a pivotal area of technical support (in my opinion). Are there other areas of technical support and resistance that might be seen when utilizing technical analysis in other time frames? For a complete technical review of the currency futures market utilizing some of the most advanced analytical software, please join me and other professional traders for detailed technical analysis in the currency futures market.

Join us on The Futures Trading Network

Join me for Nightly Technical Recaps, Updates and Outlooks for Currency Futures

Opinions Expressed are subject to change without notice. I make no promises or guarantees implied of otherwise that utilizing technical analysis in the currency futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures, therefore you should carefully consider whether such an investment is right for you in light of your financial position.

Currency Futures Trading: Currency Traders Recap 7/28/10

Richard Estrada — Wed, 28 Jul 2010 20:23:59 +0000

Commodity traders were again battling for position in the currency futures market. Today we watched markets like the British Pound Futures continue its’ voyage into outer space, while the Canadian Dollar fell from the top of a mountain peak. The question for commodity traders currency futures trading is, can the bulls defend pivotal technical areas in markets like the Canadian Dollar, or are bears getting ready to jump into markets like the British Pound Futures? Let’s take a closer look at the currency future market and see what we can deduce from today’s currency futures trading action.

The daily chart of the September 2010 British Pound Futures (6B) contract (see chart below) shows that the bulls continue to be in control and appear poised to test a significant area of technical resistance (52-week moving average 1.5486). A failure to push through this area and we might see bulls take some profits off the table as well as bears come into the market looking for a short-tem pullback.

The daily chart of the September 2010 Canadian Dollar Futures (6C) contract (see chart below) shows that the bulls lost some technical steam, but are holding the line in the vicinity of the 5 (red – .9646) and 75-day (green – .9649) moving averages. Technically speaking, because the bears were able to close the market below this area today, then I consider that technically weak and or bearish. The question is can the bears defend the area around the 5 and 75-day moving averages tonight, or will the bulls make a stand and another push?

The daily chart of the September 2010 Euro Currency Futures (6E) contract (see chart below) shows that Euro Currency appears to be consolidating between this week’s high (1.3046) and the 5-day moving average (red – 1.2976). The winner of this battle might be determined by which side gives way first, or maybe the market spikes through both areas taking out stops on both sides before deciding on a direction.

The daily chart of the September 2010 Japanese Yen Futures (6J) contract (see chart above) shows the bears are testing the bottom a modified bear flag technical formation (outlined in blue), which is also in close proximity to the 25-day moving average (blue – 1.1394). This average (25-day) might turn out to be a good gauge of technical momentum and a good indication of direction next week. Are there other areas of technical support and resistance that might be seen when utilizing technical analysis in other time frames? For a complete technical review of the currency futures market utilizing some of the most advanced analytical software, please join me and other professional traders for detailed technical analysis in the currency futures market.

For more information on The Futures Trading Network

Nightly Technical Recaps, Updates and Outlooks for Currency Futures

Opinions Expressed are subject to change without notice. I make no promises or guarantees implied of otherwise that utilizing technical analysis in the currency futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures, therefore you should carefully consider whether such an investment is right for you in light of your financial position.

Currency Futures Trading: Currency Traders Update 7/26/10

Richard Estrada — Mon, 26 Jul 2010 16:19:59 +0000

After a nice little weekend break currency traders are back at the front lines. Once again we are seeing the U.S. Dollar get hammered across the board as currency traders take long positions in markets like the Euro Currency and Canadian Dollar. The question for traders currency futures trading is will the dollar continued to sell-off this week, or will we see reversals of fortunes? Let’s take a look at the daily charts of the currency futures market and see what we can deduce from today’s action.

The daily chart of the September 2010 British Pound (6B) Futures contract (see chart below) shows that the bulls are in a strong upward push and have pierced the top of an upward channel (outlined in red). You will also notice that the bulls defended the area around the 25-day moving average (blue – 1.5159) twice in the last thirty days (gray eclipses). The question today is will we see the British Pound pullback to the 5-day moving average (red – 1.5321), before continuing its’ upward march?

The daily chart of the September 2010 Canadian Dollar (6C) Futures contract (see chart below) clearly illustrates that the bulls are testing the top of a pennant technical formation (outlined in green). A run through this area and we might see buyers technically enticed, but a failure to run through this area and we might see bears make a technical move.

The daily chart of the September 2010 Euro Currency (6E) Futures contract (see chart below) shows that the bulls are in control and look to be eyeing last week’s high (1.3029). The question for currency traders now is, will the bulls make a move for this area today or tonight, or will a failure to run through this area entice sellers to defend?

The daily chart of the September 2010 Japanese Yen (6J) Futures contract (see chart above) shows currency traders battling within a modified bull flag formation (outlined in blue). This formation may turn out to be a good gauge of technical momentum, at least for the coming week. Are there other areas of technical support and resistance that might be seen when utilizing technical analysis in other time frames? For a complete technical review of the currency futures market utilizing some of the most advanced analytical software, please join me and other professional traders for detailed technical analysis in the currency futures market.

For more information on The Futures Trading Network

Nightly Technical Recaps, Updates and Outlooks for Currency Futures

Opinions Expressed are subject to change without notice. I make no promises or guarantees implied of otherwise that utilizing technical analysis in the currency futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures, therefore you should carefully consider whether such an investment is right for you in light of your financial position.

Currency Futures Trading: Currency Traders Update 7/22/10

Richard Estrada — Thu, 22 Jul 2010 13:44:59 +0000

The currency futures market continues to be (in my humble opinion) one of the most exciting and aggressive markets in the world, which could mount to serious trouble if you get cocky or lazy with your trading. Once again, commodity traders are baring witness to some rather large stop and go reversals. The question for commodity traders day trading futures, particularly for those currency futures trading, are we apt to see two days in one direction or just more whipsawing? Let’s take a step back and look at the daily charts of some of the currency futures markets.

The daily chart of the September 2010 British Pound Futures (6B) contract (see chart below) clearly shows the market trading between the 5-day moving average (red – 1.5245) and the 25-day moving average (blue – 1.5106), which we might see continue through Friday and early next week. The question is if the market can push above the 5-day moving average, will that entice buyers or sellers looking for another stop and go reversal?

The daily chart of the September 2010 Canadian Dollar Futures (6C) contract (see chart below) shows that the bulls did defend the area around the 5-day moving average (red .9536) and actually used the area as a launching today. The question now is can the bulls muster enough technical momentum to test the top of the pennant technical formation (outlined in green), or will we see this market continue to whipsaw?

The daily chart of the September 2010 Euro Currency Futures (6E) contract (see chart below) shows a huge move from yesterday’s session low (1.2731). The question now is can the bulls make another push at this week’s high (1.3029), or are the bears lying in wait? The close of the Globex might give us a technical indication of strength for tonight’s trade.

The daily chart of the September 2010 Japanese Yen Futures (6J) contract (see chart above) clearly illustrates a breakout from a bull flag technical formation (outlined in blue). The next viable target appears to be last week’s high (1.1600), Are there other areas of technical support and resistance that might be seen when utilizing technical analysis in other time frames? For a complete technical review of the currency futures market utilizing some of the most advanced analytical software, please join me and other professional traders for detailed technical analysis in the currency futures market.

For more information on The Futures Trading Network

Nightly Technical Recaps, Updates and Outlooks for Currency Futures

Opinions Expressed are subject to change without notice. I make no promises or guarantees implied of otherwise that utilizing technical analysis in the currency futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures, therefore you should carefully consider whether such an investment is right for you in light of your financial position.

EUR USD: Euro Futures: Euro Forex Futures Update 7/21/10

Richard Estrada — Wed, 21 Jul 2010 12:10:59 +0000

The EUR USD broke below the 5-day moving average (red - 1.2898) and is down over 80 ticks in early trade (see daily chart below). Commodity traders who are day trading futures, particularly the Euro Forex Futures might have been enticed to sell the market once the market fell back through the 5-day moving average last night. The question for currency traders now is do they fade the sell-off, or try and jump on the short train in the EUR USD?

The 60-minute chart of the Euro Currency Futures (see chart above) shows the market currently trading within a very thin area of volume support (third red rectangle up from the bottom), which is also the only technical buffer before the next level of potential technical support (in the area of 1.2700). Will the bulls be able to hold this area, or will a break below this area entice more short-term selling? How do I define levels and why do we consider levels important. Join me and other professional traders for detailed technical analysis in the currency futures market and discover the power of detailed technical analysis..

For more information on The Futures Trading Network

Nightly Technical Recaps, Updates and Outlooks for Currency Futures

Opinions Expressed are subject to change without notice. I make no promises or guarantees implied of otherwise that utilizing technical analysis in the currency futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures, therefore you should carefully consider whether such an investment is right for you in light of your financial position.

Technorati Tags: Commodity Traders, currency traders, day trading futures, EUR USD, Euro Currency futures, Euro Forex Futures, Euro Futures, Technical Analysis

EUR USD: Euro Futures: Euro Forex Futures Update 7/20/10

Richard Estrada — Tue, 20 Jul 2010 14:14:59 +0000

The EUR USD reverses direction last night and comes tumbling down this morning (see 60-minute chart below). Commodity traders day trading futures, particularly the Euro USD have watched the market run through a pivotal level of technical resistance (blue rectangle on the left of the 60-minute chart) and then reverse right back down and break through a pivotal level of technical support (top red rectangle on the left of the 60-minute chart). You will also notice that the market reestablished a new level of thin technical support and new level of thin technical resistance (thin blue rectangle), but the market has since broken through the thin level of resistance and appears potentially poised to retest the top level of resistance. An exciting, but challenging day for trend traders today.

The 5-minute chart of the Euro Forex Futures contract (see chart below) clearly illustrates the sell-off and bounce that occurred today. The question for commodity traders now is, will traders see another retest of the top level of technical resistance, or will the market coming crashing back below the 5-day moving average and entice more sellers? How do I define levels and why do we consider levels important. Join me and other professional traders for detailed technical analysis in the currency futures market and discover the power of detailed technical analysis.

For more information on The Futures Trading Network

Nightly Technical Recaps, Updates and Outlooks for Currency Futures

Opinions Expressed are subject to change without notice. I make no promises or guarantees implied of otherwise that utilizing technical analysis in the currency futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures, therefore you should carefully consider whether such an investment is right for you in light of your financial position.

Technorati Tags: EUR USD, Euro Currency futures, Euro Forex Futures, Euro Futures, Technical Analysis

Currency Futures Trading: Currency Traders Update 7/19/10

Richard Estrada — Mon, 19 Jul 2010 15:31:59 +0000

Currency traders are coming back from an extra hot weekend and are seeing a mixed bag in the currency futures market. The question for traders currency futures trading this week is, will currency traders see a continuation of the daily trends that we saw last week in the British Pound and Euro Currency? And how about the two day power move in the Japanese Yen, was that the beginning of a second stage to this rally that started when the bulls brokeoug of a pennent techncal formation (outlined in green)? And what about the Canadian Dollar? Will commodity traders continue to see this market trade between the last cycle lows (.9357 & .9361) and cycle high (.9726), or is a breakout looming? Let’s take a closer look at the currency futures market and see what we can deduce when utilizing technical analysis.

The daily chart of the September 2010 British Pound Futures (6B) contract (see chart below) shows that the bears have been able to break below the 5-day moving average (red – 1.5283), which in my technical opinion is a technical indication that the British Pound might be losing some upside technical momentum. The question for commodity traders going forward is will the bulls look to defend the area around the 25-day moving average (blue – 1.5053), or are the bears looking to make a play for 1.4946?

The daily chart of the September 2010 Canadian Dollar Futures (6C) contract (see chart below) shows that the bears defended the rally in the vicinity of the 75-day moving average (.9682). You will also notice that the bulls were unable to hold the line near the 5 (red – .9584) or 25-day (blue – .9596) moving averages. Unless the bulls are able to establish a new level of technical support the next downside target appears to be the double bottom low between .9357 and .9361.

The daily chart of the September 2010 Euro Currency Futures (6E) contract (see chart below) shows the bulls have once again defended the area around the 5-day moving average (red – 1.2858), which has been a pivotal area of technical support. This chart is extremely bullish and any attempt to fade this rally may turn out to be futile, though a break back below the 5-day moving average and we might see a quick pullback to the 75-day moving average (green – 1.2697).

The daily chart of the September 2010 Japanese Yen Futures (6J) contract (see chart above) shows that the Japanese Yen is trading inside last Friday’s bar, which might mean consolidation before a breakout. The question for currency traders is, which way does the breakout occur? Are there other areas of technical support and resistance that might be seen when utilizing technical analysis in other time frames? For a complete technical review of the currency futures market utilizing some of the most advanced analytical software, please join me and other professional traders for detailed technical analysis in the currency futures market.

For more information on The Futures Trading Network

Nightly Technical Recaps, Updates and Outlooks for Currency Futures

Opinions Expressed are subject to change without notice. I make no promises or guarantees implied of otherwise that utilizing technical analysis in the currency futures market will result in profits or limited losses. There is significant risk of financial loss in trading futures, therefore you should carefully consider whether such an investment is right for you in light of your financial position.