Currency Futures Trading: Day Trading Futures Update 4/27/10
Posted by: Richard Estrada // Category: Currency Futures Trading
Commodity traders day trading futures, specifically currency futures are once again very active today. The question for commodity traders day trading currency futures is, are the reversals we are seeing in the British Pound, Canadian Dollar and Japanese Yen opportunities to fade, or are these reversals a prelude of what is to come? Let’s take a closer look at the currency futures market and see what we can see when utilizing technical analysis to these markets.
The daily chart of the June 2010 British Pound Futures contract (see chart below) shows that the bears are testing the bottom of a bear flag technical formation (outlined in red) after the bulls failed to get above last week’s session high (1.5520). The bears seized the opportunity and have put the bulls on the defensive and the question is will the bears be able to break below the bear flag formation?
The daily chart of the June 2010 Canadian Dollar Futures contract (see chart below) shows a significant sell-off after the bears were able to break below the 5-day moving average (red – .9982), which I had identified as a pivotal area of technical support. The question now is will the bulls defend the area around the 25-day moving average (blue – .9918), or is this going to be a long squeeze meant to punish commodity traders who were playing for an upside breakout?
The daily chart of the June 2010 Euro Currency Futures contract (see chart below) shows that the bears again defended and seized control in the vicinity of the 5-day moving average (red – 1.3352). The question for commodity traders day trading the Euro Currency is will we see a bounce from the early low (1.3278), or will the bears make another downward push keeping the bulls on the defensive?
The daily chart of the June 2010 Japanese Yen Futures contract (see chart above) shows that the Japanese Yen has recovered some lost ground, but has ran into technical resistance in the vicinity of the 5-day moving average (red – 1.0683). Is this area an opportunity to get short, or was last week’s initial break below the bear flag technical formation a bluff to the downside? Are there other areas of technical resistance or technical support that might be seen when utilizing technical analysis in other time frames? For complete detailed technical analysis in the currency futures market, join me daily in our live trading room. A trading room created by professional traders for traders.
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Opinions expressed are subject to change without notice. I make no promises or guarantees implied or 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 trading futures is right for you in light of your financial condition.
