Another big day in the currency futures market. Commodity traders day trading currency futures were again witness to some extreme short-term volatility. Commodity traders who are currency futures trading are having to either give the currency futures market a little more room, or increase their frequency well maintaining tight stops. The question for commodity traders tonight is the same one we posed yesterday, which was will we see markets like the British Pound, Canadian Dollar and Euro Currency find some short-term technical support and bounce hard, or will the momentum of the week continue to be the way to go?
The daily chart of the June 2010 British Pound Futures contract (see chart below) shows that the British Pound Futures (6B) continues to test and hold near the bottom of a bull-flag technical formation (outlined in blue). All things considered today the British Pound didn’t fare badly, or not as badly as it might have (my opinion). The 5-day moving average (red – 1.5173) will not only be the initial area of technical resistance area, but also a potential pull-back target.

The daily chart of the June 2010 Canadian Dollar Futures contract (see chart below) shows that the bears were not only able to break through the 75-day moving average (green – .9714), but they (bears) were able to close the Canadian Dollar (6C) below this area. The question now is will the bulls look for an area of technical support in the vicinity of the upward channel (outlined in blue), or are the bears looking at another downside target?
The daily chart of the June 2010 Euro Currency Futures contract (see chart below) shows another huge day to the downside. Can you say TIMBERRRRR? The question for commodity traders is will we see a bounce somewhere, or are we believing that the Greece crisis is the potential collapse of the Euro Currency? I tend to speculate that even though this move over the last week is large, on a longer-term time frame the Euro Currency is trading at the same levels as it was a year ago. Therefore, I’m looking for areas in the Euro Currency (6E) that might be technical support areas from which a reversal could begin.


The daily chart of the June 2010 Japanese Yen Futures contract (see chart above) shows an explosive move up from the bottom of a downward channel (outlined in blue). The bulls were able to push the Japanese Yen above the 5-day moving average (red –1.0627), which had been a pivotal area of short-term technical resistance. You will also notice that the Japanese Yen (6J) is testing both the 25-day moving average (blue – 1.0686) and the top of a downward channel. A push through this area and we might some technical buying pressure. Are there other areas of technical support and technical resistance 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.
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