Currency Futures Trading

What an amazing day in the currency futures market. Futures traders who were long today in either the British Pound, Canadian Dollar and or Euro Currency futures faired really, really well today. The Japanese Yen on the other hand was up only about 20 ticks, but did break out of a technical formation. The question for traders currency futures trading tonight is simple; do we see a pullback, or do we see futures traders continue to try and push the currency futures up. Let take a closer look at the currency futures market and see what we can deduce when applying technical analysis.

The weekly chart of the British Pound Futures (see chart below) shows that futures traders were finally able to push the British Pound (6BZ1) above the 4-week moving average (red – 1.5558), which has been a significant area of technical resistance for the last few months. Also notice the isolated pivot bar, which I consider technically bullish. A few Long-term Indicators have also turned bullish, which may mean the British Pound has turned a corner.

BP daily chart for CFT on Monday October 10, 2011

The daily chart of the December 2011 British Pound Futures contract (see chart above) shows a huge three-day rally, but notice that today’s rally only added 40 ticks to the overall 500 tick bounce . Also notice that the British Pound looks poised to test a significant area of technical resistance (between 1.5706 & 1.5718). A failure to push through this area and we might see the market test the 5-day moving average (red – 1.5492).

The weekly chart of the Canadian Dollar Futures (see chart below) shows that futures traders were able to pierce the 4-week moving average (red – .9641) and might be in position for a good longer-term run. Long-term Indicators are still bearish, but are turning.

CD daily chart on Monday October 10, 2011

The daily chart of the December 2011 Canadian Dollar Futures contract (see chart above) shows an explosive move up. We not only have the market pushing above longer-term technical resistance areas, but we also see that longer-term Indicators are signaling a change from bearish to bullish. The 4-week moving average (red – .9641) will be considered a pivotal area of technical support as will the 5-day moving average (.9579). A potential upside target in the Canadian Dollar could be the area around .9834.

The weekly chart of the Euro Currency Futures (see chart below) shows a huge run up as futures traders get long the Euro Currency Futures. The question now is can the bulls hold onto the momentum, or was today’s rally a result of light volume today? Long-term Indicators are still bearish, but some Indicators are showing signs of turning.

EC daily chart on Monday October 10, 2011

The daily chart of the December 2011 Euro Currency Futures contract (see chart above) shows the strength of today’s rally. Also notice futures traders utilized the area around the 5-day moving average (red 1.3408) as a launching pad to the upside today. The question now is simple; can the bulls push through the area around 1.3684, or is this where the bears are going to make a stand?

The weekly chart of the Japanese Yen Futures (see chart below) unfortunately shows more of the same. The Japanese Yen has again pierced the top of a bull-flag formation (outlined in blue), but has yet to have any major follow through. The 13-week moving average (blue – 1.2979) continues to act as a pivotal are of technical support.

JY daily chart on Monday October 10, 2011

The daily chart of the December 2011 Japanese Yen Futures contract (see chart above) shows that futures traders were able to once push the market above a bull-flag technical formation (outlined in blue), but ran at a gas at some point today. Will this failure of the bulls to make a real push be an opportunity for bears to get aggressive?

A final thought about currency futures trading tonight. Are these big moves up a real sentimental change in the currency futures market, or was today’s rallies the result of light volume? These moves up might actually be the beginning of bull runs that take us into the end of the year, though futures traders will need to see technical confirmations (such as a low holding on retest). Remember, just because a market has maybe changed long-term direction, does not mean that you still can’t trade both side of the market. If you don’t have the time to do the detailed analysis, planning and monitoring of the currency futures market, than don’t hesitate to sign up for my free daily, strategic and timely analysis. Sign up today and get your first report tonight.

Yes, I would like up for free daily Currency Futures Trading Reports.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the 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: currency futures, Currency Futures Trading, Futures Traders, Futures Trading, Technical Analysis

What a week for futures traders who were currency futures trading this week. Futures traders witnessed some huge moves, to include aggressive sell-offs only to be followed by stop and go reversals. This week was like riding a roller coaster, where the coaster does nothing but go up and down and down and up over and over. The question for currency traders coming into the last day of the week is simple, can the bulls keep their new found momentum, or will currency traders look to start taking profits creating an opportunity for bears to take advantage? Let’s take a closer look at the currency futures market and see what we can deduce when applying technical analysis.

The daily chart of the December 2011 British Pound Futures contract (see chart below) shows a massive spike bar to the downside, but notice that by the close currency traders had pushed the market back to the top one-third of the daily bar. I call this an isolated pivot bar, which sometimes are identified around pivot points or pauses in trends. This isolated pivot, coupled with the Stochastic Divergence and piercing of the 5-day moving average (1.5426), leans me to speculate in a strong finish tomorrow. Though a failure to hold the market above the 5-day moving average tonight and we could see this as a technical weakness and an opportunity for the bears.

The daily chart of the December 2011 Canadian Dollar Futures contract (see chart above) clearly illustrates that the bulls were able to push the market back above the 5-day moving average (red – .9536), which has been a stubborn area of technical resistance since the sell-off began back in August 2011. Currently the weekly chart of the Canadian Dollar Futures (see chart below) shows that currency traders have plenty of room to the upside before running into technical resistance (4-week moving average .9757). So can the bulls make a strong push, while holding above the 5-day moving average tonight and tomorrow?

The weekly chart of the Euro Currency Futures (see chart below) shows that the potential isolated pivot bar is one day away from becoming a reality. Based on the current high low range of the weekly bar; futures traders could see the market fall a over 50 ticks tomorrow and the isolated pivot bar would still be intact. An isolated pivot bar in my opinion could be considered technically strong.

The daily chart of the December 2011 Euro Currency Futures contract (see chart above) shows the Euro Currency trading within another bear-flag-technical formation (outlined in red). If currency traders can push the Euro Currency through the top of the bear-flag technical formation, currency traders might see an explosive move to the upside. The 5-day moving average (red – 1.3324) will be a pivotal area of technical support tonight. A break back below this average and it’s feasible currency traders watch the market tumble.

The daily chart of the December 2011 Japanese Yen Futures contract (see chart below) shows that currency traders continue to test the top of a bull-flag technical formation (outlined in blue), but have yet to bust through the top it. Also notice that the 5-day moving average (red – 1.3049) is holding as a technical support area. This average will be a good gauge of technical momentum tonight. If currency traders can hold the area around the 5-day moving average tonight, currency traders might be able to finally bust through the top of the bull-flag technical formation. A failure to get above this area, and it’s possible that currency traders sell the markets aggressively.

A final thought about currency futures trading. Currency Futures are the most aggressive markets in the world and for some trading futures that’s a good thing, while for others not so good. In my opinion, currency future’s trading is about 90% preparation, planning and monitoring of the currency futures markets, while 10% is actual trading. So a general rule is if a currency trading is doing very little preparation, planning and monitoring; that might be an ingredient for failure. If you don’t have the time to do the detailed analysis, planning and monitoring of the currency futures market, than don’t hesitate to sign up for my free daily, strategic and timely analysis. Sign up today and get your first report tonight.

 Yes, I would like up for free daily Currency Futures Trading Reports.

 Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the 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: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Traders, Futures Trading, Japanese Yen futures, Technical Analysis

Futures traders who were long currency futures, specifically the British Pound, Canadian Dollar and Euro Currency futures faired well Tuesday. Futures traders were able to push through pivotal areas of technical resistance and are now testing pivotal areas of technical support. The question tonight is, can the bulls keep their momentum, or are the bears ready to repel Tuesday’s rally? Let’s take a closer look at the currency futures market and see what we can deduce when applying technical analysis.

The weekly chart of the British Pound futures (see chart above) shows that futures traders are currently testing the 4-week moving average (red – 1.5666), which I will consider a pivotal area of technical resistance. A failure to push the market through this area and we might see futures traders technically enticed to sell the British Pound.

The daily chart of the December 2011 British Pound futures contract (see chart above) shows that futures traders were able to push the market right through the 5-day moving average (red – 1.5504), which has been a pivotal area of technical resistance since this sell-off began. Also notice the Stochastic Divergence, which is another indication that at the very least the bears might be losing some technical downside momentum.

The weekly chart of the Canadian Dollar futures (see chart below) shows that futures traders pushed the market up, but were unable to get to the 4-week moving average (red – .9906). A failure to get above the 4-week moving average this week could signal technical weakness and a new round of selling.

The daily chart of the December 2011 Canadian Dollar futures contract (see chart above) clearly illustrates a run above the 5-day moving average (red – .9715). Also notice that the Canadian Dollar is back trading at the 5-day moving average, which may turn out to be a good gauge of technical strength tonight. If futures traders can hold this area, futures traders may have a shot at the 4-week moving average (.9906) this week.

The weekly chart of the Euro Currency futures (see chart below) shows that futures traders pierced the 4-week moving average (red – 1.3614), but failed to hold the market above this area. If futures traders can push above this area it may bring into play the 52-week moving average (green – 1.3937) as a potential upside target.

The daily chart of the December 2011 Euro Currency futures contract (see chart above) shows that futures traders were able to push the Euro Currency significantly above the 5-day moving average (red – 1.3514) today, but the market is now down 83 ticks and bears are testing the 5-day moving average to the downside. Notice that there is Stochastic Divergence, which is considered technically bullish. The question now is who wins the night?

The weekly chart of the Japanese Yen futures (see chart below) shows a market still vacillating between the top of a bull-flag technical formation (outlined in blue) and the all time high (1.3173). Notice that the Japanese Yen is finding technical support at the 4-week moving average (red – 1.3015), which I will utilize as a gauge of technical strength.

The daily chart of the December 2011 Japanese Yen futures contract (see chart above) shows the market trading within a ascending triangle. If the bulls are able to push the market through the top of this technical formation, we might see futures traders enticed to buy this breakout. A break below the 25-day moving average (blue – 1.3016) and futures traders might consider selling this market.

A final thought about currency futures trading. We our watching certain currency futures test pivotal areas of technical support. These areas tonight will be pivotal battle lines and possibly good gauges of technical strength and direction. Remember, currency futures trading isn’t for the meek or garden-variety-investor, but for those investors bold enough and daring enough to think outside the box. Good luck and good trading.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the 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: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Trading, Japanese Yen futures, Technical Analysis

Once again the currency futures market explodes with action Sunday evening. For futures traders currency futures trading the volatility is expected. Some currency futures markets have broken through significant areas of technical support, while other markets continue to test and tease traders at an all time high. The question for currency traders tonight is simple. Will the sell-offs in the British Pound, Canadian Dollar and Euro Currency continue? And will futures traders finally push the Japanese Yen above the all time high (1.3173) this week? Let’s take a closer look at the currency futures market and see what we can deduce when applying technical analysis.

The weekly chart of the British Pound futures (see chart below) clearly shows that the British Pound has picked up steam to the downside and even pierced the cycle low of 1.5335. The question for currency traders trading the British Pound is how far does this market drop?

The daily chart of the December 2011 British Pound futures contract (see chart above) shows that the bulls are close to testing the 5-day moving average (red – 1.5495), which has acted as a technical resistance area since this sell-off began last month. If futures traders can push above this average, we might see a quick and steep rally. Notice the potential Divergence within the Stochastic Indicator.

The weekly chart of the Canadian Dollar futures (see chart below) looks rather scary if you are long or thinking about getting long. Notice that there is almost 300 ticks to the next cycle low (light red rectangle). If the Canadian Dollar can find support the 4-week moving average (red – .9880) might be a potential upside target.

The daily chart of the Canadian Dollar futures contract (see chart above) shows the market in a steep decline. A close today back at the top one third of the bar (isolated pivot bar) and I would consider that technically bullish, at least over the short term. If you are a futures trader wanting to jump in on the downside train, you might want to see how the market trades near the 5-day moving average.

The weekly chart of the Euro Currency futures (see chart below) shows that the 4-week moving average (red – 1.3577) was again the area to short from. Also notice that futures traders were finally able to break below the bull-flag technical formation (outlined in blue). The question now is was this move technically significant, or just a way to take out weak longs?

The daily chart of the December 2011 Euro Currency futures contract (see chart above) shows that futures traders pierced the significant low of 1.3880, but were unable to keep the market below that area. You should also notice that there is possible Divergence and a close back toward the top of today’s bar and you might see this market pop hard.

The weekly chart of the Japanese Yen futures (see chart below) shows that futures traders are once again pushing the market higher from the 4-week moving average (red – 1.3024). This move back towards the all time high (1.3173) comes weeks after the Japanese Yen held above the 13-week moving average (blue – 1.2910).

The daily chart of the December 2011 Japanese Yen futures contract (see chart above) shows the Japanese Yen trading within a bear-flag technical formation (outlined in red). If futures traders can bust through 1.3180, then how far the Japanese Yen climbs is any ones guess. If futures traders are able to push the market back below the 5-day moving average (red – 1.3086), then we might see some technical selling.

A final thought about currency futures trading. Once again, in my opinion these are the most aggressive markets the world has come to know, so don’t get complacent. Study your charts, create trading ideas based on sound technical possibilities and execute. If you don’t have the time don’t hesitate to sign up for my free daily, strategic and timely analysis. Sign up today and get your first report tonight.

Yes, I would like up for free daily Currency Futures Trading Reports.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the 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: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Traders, Futures Trading, Japanese Yen futures, Technical Analysis

As futures traders waited for the news from the Fed the currency futures markets were rather quite, but then all of sudden the currency futures were moving. The British Pound and Canadian Dollar were the biggest losers, while the Japanese Yen in my opinion might turn out to be potentially the best trade set-up for longer-term trend traders. The question for futures traders now is where do these markets go from here? No one ever knows that answer, but let’s take a closer look at the currency futures market and see what we can deduce when applying technical analysis.

The weekly chart of the British Pound futures (see chart below) shows that the British Pound looks poised to test the next cycle low of 1.5335. Futures traders will notice that this last sell-off began in the vicinity of the 4-week moving average (red – 1.5822), which will be considered the first level of technical resistance on the weekly chart.

The daily chart of the December 2011 British Pound futures contract (see chart above) shows the hard drop today. Again futures traders should notice that the 5-day moving average (red – 1.5636) has acted as an area of technical resistance for most of this sell-off; therefore this average will be a pivotal area of technical resistance. I would also like to point out the potential divergence in the Stochastic Indicator, but the sell-off may not be over so the reading of the Stochastic could be premature.

The weekly chart of the Canadian Dollar futures (see chart below) clearly illustrates that the bears have blown through the pivotal technical low of .9980. Futures traders will also notice that on the weekly chart the next real cycle low is 500 ticks away; therefore be very careful of stepping in front of this potential train if your thinking long.

The daily chart of the December 2011 Canadian Dollar futures contract (see chart above) shows the once the market broke through an area I considered a significant area of technical support (green rectangle) the market collapsed. Once again, there is potential divergence in the Stochastic Indicator, which might be an opportunity for an aggressive bull trader.

The weekly chart of the Euro Currency futures (see chart below) clearly illustrates the market inched down, but is still holding above the bottom of a bull-flag technical formation (outlined in blue). Also notice that the 4-week moving average (red – 1.3791) will be a potential upside target if the bulls can hold the line.

The daily chart of the December 2011 Euro Currency futures contract (see chart above) shows that Euro Currency took out both the high and low of the week before closing 8 ticks down from Tuesday’s close. The question here is can the bulls keep the market above the pivotal technical low of 1.3501?

The weekly chart of the Japanese Yen futures (see chart below) shows that the market is trading near the lows of the week after breaking out of bull-flag technical formation (outlined in blue). If futures traders can push the market below the 4-week moving average (red – 1.3002), then it is possible we might see some technical selling at least over the short-term.

The daily chart of the December 2011 Japanese Yen futures contract (see chart above) shows that futures traders have been able to push this market back below the top of a bull-flag technical formation, and also were able to pierce the 5-day moving average (red – 1.3067). The failure of the Japanese Yen to push through the all-time high of 1.3173 after breaking out of a bull-flag formation might be considered technically bearish and an opportunity for aggressive bear traders.

A final thought about currency futures trading. Currency futures never disappoint in regard to volatility. These markets can definitely shake rattle and roll, so never let your guard down and always do your homework. If you don’t have the time don’t hesitate to sign up for my free daily, strategic and timely analysis. Sign up today and get your first report tonight.

Yes, I would like to sign up for my free daily Currency Futures Trading Report.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the 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: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Trading, Japanese Yen futures, Technical Analysis

Currency traders are once again battling for position tonight as the midnight hour has come and gone. Futures traders who are currency futures trading tonight are confronted with a few falling markets, but these currency futures markets have yet to break through key levels of technical support. The Japanese Yen on the other hand appears poised to run, but so far futures traders are just getting teased. Let’s take a closer look at the currency futures market and see what we can deduce when applying technical analysis. 

The weekly chart of the British Pound futures (see chart below) shows that the bears are clearly in control. Notice that the British Pound has broken through the significant technical low of 1.5768 and futures traders have technically nothing in their way until about 1.5350. The 4-week moving average (red – 1.5878) will be considered the initial area of technical resistance. 

The daily chart of the December 2011 British Pound futures contract (see chart above) shows the aggressive sell-off that began last month. Notice that the 5-day moving average (red – 1.5734) has acted as an area of technical resistance for almost the entire sell-off. The question now is will futures traders continue to sell this market, or will futures traders see a turnaround in the next few days?

The weekly chart of the Canadian Dollar futures (see chart below) shows that the 4 (red – 1.0111) and 52 (green – 1.0136) week moving averages failed to hold as technical support today. The question now is will futures traders test the low of last week (.9967), or try again to push the Canadian Dollar back above the 4 and 52 week moving averages?

The daily chart of the December 2011futures contract (see chart above) shows the Canadian Dollar trading within a bear-flag technical formation (outlined in red). This will be the second bearish technical formation that is occurring within a significant area of technical support (green rectangle). The 5 (red – 1.0112) and 25 (blue – 1.0116) day moving averages will be considered the first level of technical resistance. A failure to get above this area tonight and futures traders might see a test of the bottom of the significant area of technical support.

The weekly chart of the Euro Currency futures (see chart below) shows that the Euro Currency is still trading below the bear-flag technical formation (outlined in red), but is holding above a smaller bull-flag technical formation (outlined in blue). The 4-week moving average (red – 1.3821) will be considered a pivotal area of technical resistance.

The daily chart of the December 2011 Euro Currency futures contract (see chart above) shows that the bears broke through the bottom of a bear-flag technical formation, but have not been able to hold the initial downside momentum. The 5-day moving average (red – 1.3745) like the 4-week moving average will be considered a pivotal area of technical resistance.

The weekly chart of the Japanese Yen futures (see chart below) clearly illustrates a break out of a bull-flag technical formation (outlined in blue). The question now is can the bulls make a play at the all time high of 1.3173?

The daily chart of the December 2011 Japanese Yen futures contract (see chart above) also shows that the bulls were able to push through the top of a bull-flag technical formation (outlined in blue). The 5-day moving average (red – 1.3056) will be a good gauge of technical strength tonight and later today.

A final thought about currency futures trading. The currency futures markets in my opinion are the most aggressive in the world, so prepare like a professional; plan, prepare and execute. Stay focused and remember things can change quickly so don’t get complacent. Good luck and good trading.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the 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: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Trading, Japanese Yen futures, Technical Analysis

Once again the weekend has come and gone and futures traders currency futures trading are in full swing. The British Pound, Canadian Dollar and Euro Currency are all down and two of the three have broken through pivotal areas of technical support. The Japanese Yen on the other hand is down, but only about ten ticks and appears poised to pop to the upside. The question for futures traders tonight is are we seeing a long squeeze for futures traders who bought late last week, or are we seeing the beginning of a significant sell-off? Let’s take a closer look at the currency futures market and see what we can deduce when applying technical analysis.

The weekly chart of the British Pound futures (see chart below) clearly shows that the British Pound opened below last Friday’s close (1.5474) and is now 100 ticks below the significant low of 1.5768. The question for currency traders now is a simple one, which is can the bulls find a level of technical support close by, or are the bears in position to really slam this market?

The daily chart of the December 2011 British Pound futures contract (see chart above) clearly illustrates the open and quick dip down, but a pop back above the 5-day moving average (red – 1.5759) and we might see a hard spike upwards. A potential downside target is not even visible on this chart, but lies at the next cycle low on the weekly chart (1.5397).

The weekly chart of the Canadian Dollar futures (see chart below) shows a market down nearly 50 ticks, but notice that the bulls are holding the line in the vicinity of the 52-week moving average (green – 1.0138). If the bulls can hold this area then currency futures traders may see a test of Last Friday’s high (1.0204), which also happens to be the last week’s high. A break back below this average and we might see currency futures traders enticed to sell the Canadian Dollar.

The daily chart of the December 2011 Canadian Dollar futures contract (see chart above) shows that the Canadian Dollar did bust above a significant area of technical support (green rectangle) and is currently holding above both the 5 (red – 1.0135) and 25 (blue – 1.0122) day moving averages. Notice also that the 5-day moving average has crossed above the 25-day moving average, which is considered technically bullish.

The weekly chart of the Euro Currency futures (see chart below) shows that the market opened below the bear-flag technical formation (outlined in red), but is still holding above last week’s low (1.3497). The low of last week also intersects the bottom of a bull-flag technical formation (outlined in blue), which may turn out to be the bottom of this current leg down if the bulls can hold the line above this area.

The daily chart of the December 2011 Euro Currency futures contract (see chart above) show that the bulls failed to hold the market at or above the 5-day moving average (red – 1.3761), and also failed to hold the bottom of a bear-flag technical  formation (outlined in red).

The weekly chart of the Japanese Yen futures (see chart below) shows that even though the Japanese Yen is down 7 ticks the bulls are holding the market at and above the 4-week moving average (red – 1.2997). Also notice that if the bulls can push the market above last week’s high (1.3063), then it might bring the top of the bull-flag technical formation (outlined in blue) in play.

The daily chart of the December 2011 Japanese Yen futures contract (see chart above) shows that the 5-day moving average (red – 1.3011) has crossed above the 25-day moving average (blue – 1.3007), which is considered technically bullish. These averages on this chart will be good gauges of technical strength today.

A final thought about currency futures trading. Analyze your charts, create trading plans based on different trading scenarios, create contingency plans and execute when and if it plays out the way prepared. Stay focused and be smart. Good luck and good trading.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the 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: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Trading, Japanese Yen futures, Technical Analysis

As futures traders return from a rather somber weekend the currency markets are in full swing. For futures traders who dare to trade currency futures, these markets never really give you a break. These markets are unemotional and seem to never let you up for air especially when caught of the wrong side of trade. The question tonight is will we the bears continue to put the pressure on this week, or can the bulls find a few pivot points and counter the bears current momentum? Let’s take a closer look at the currency futures market and see what we can deduce when applying technical analysis.

The weekly chart of the British Pound futures (see chart below) shows that the 4-week moving average (red – 1.6056) has crossed below both the 13-week (blue 1.6168) and 52-week (green – 1.6070) moving average. Coupled with the technical fact that the British Pound is also piercing the bottom of an upward channel (outlined in red), doesn’t look good for the bulls. The low of 1.5768 will be a significant technical low to watch in the coming days.

The daily chart of the September 2011 British Pound futures contract (see chart above) shows a market that looks like a World War II Dive bomber. Again, we see the significant cycle low of 1.5768, which may be the last hope for the bulls. Also notice that the 5-day moving average (red – 1.5912) has acted as an area of technical resistance, which might be a good area to pay attention to.

The weekly chart of the Canadian Dollar futures (see chart below) shows a market that looks on the verge of a major sell-off. Futures traders who are short seem to have the bulls on the defensive, but can the bears make a real push below the 52-week moving average (green – 1.0126)? The low of .9980 might be the last hope for the bulls if they are looking for a line to hold.

The daily chart of the September 2011 Canadian Dollar futures contract (see chart above) shows that the Canadian Dollar is very close to breaking through the bottom of a very significant area of technical support (green rectangle). A break below this area and futures traders could see a hard spike to the downside. If the bulls are able to hold this area then futures traders might see a retest of the 5-day moving average (red – 1.0074).

The weekly chart of the Euro Currency futures (see chart below) shows a market in the mist of a pretty significant sell-off that began two weeks ago. This chart also shows that futures traders were not only able to break below the 52-week moving average (green – 1.3937), but also broke through the bottom of a bear-flag technical formation. The question now is will the Euro Currency hold the bottom of the bull flag technical formation (outlined in blue)?

The daily chart of the September 2011 Euro Currency futures contract (see chart above) shows the steep decline. If where and when the Euro Currency finds a level of technical support the 5-day moving average might be a good gauge of technical momentum, and or potential short-term upside target.

The weekly chart of the Japanese Yen futures (see chart below) shows that the Japanese Yen is holding just above the 13-week moving average (blue – 1.2802) and just below the 4-week moving average (red – 1.2991). A run up through the 4-week moving average and we might see bulls enticed to buy, while a break below the 13-week moving average and we might see sell orders triggered.

The daily chart of the September 2011 Japanese Yen futures contract (see chart above) shows that the Japanese Yen is trading within a bull-flag technical formation (outlined in blue). Based on the long-term structure I would be a little more cautious in selling this market then buying the market.

A final thought about currency futures trading. As the currency futures markets get ready to rollover, it is possible to see an increase in short-term volatility. So remember, be aware that on an intra-day basis we might see some rather quick and violent swings. Good luck and good trading.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the 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: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Trading, Japanese Yen futures, Technical Analysis

Just minutes before the President of the United States delivers a very anticipated speech on jobs. It feels as quiet as Christmas Eve when nothing is stirring not even a mouse. Futures traders who are currency futures trading have realized that the big four currency futures contracts are inching down. The question for futures traders now is simple. Are we at the beginning of a new downward leg, or are the bulls just looking for a technical area that they (bulls) may reassert their influence? Let’s take a closer look at the currency futures market and see what we can see when applying technical analysis to weekly and daily charts.

The weekly chart of the British Pound futures (see chart below) clearly illustrates that the bears have seized short-term control and seem to be making a play at the significant technical low of 1.5768. Will the bulls attempt to defend this area or will a break below this area trigger technical selling?

The daily chart of the September 2011 British Pound futures contract (see chart above) shows that the British Pound has been coming down rather quickly. Futures trader will also notice that the 5-day moving average has been an area currency traders have not been able to get above over the last week; therefore this average will be considered a pivotal area of technical resistance and good gauge of technical strength.

The weekly chart of the Canadian Dollar futures (see chart below) shows that futures traders are engaged in quite a battle near the 52-week moving average (green – 1.0122). The beginning of the week saw the bears in control, but the bulls seem to be trying to counter this week’s early down move.

The daily chart of the September 2011 futures contract (see chart above) shows that the 5-day moving average has crossed below the 25-day moving average, which is considered technically bearish. The question now is will futures traders who are short or thinking about getting short act on the technical structure of what they see?

The weekly chart of the Euro Currency futures (see chart below) shows that the bears are in complete control and have blew right through a level of technical support like a warm knife through butter. The level of technical support I am writing about was the 52-week moving average (green – 1.3933). The next level or possible technical support will be the cycle low of 1.3011. A break below this area and the next test would be the bottom of the bear-flag technical formation (outlined in red).  

The daily chart of the September 2011Euro Currency futures contract (see chart above) shows how the 5-day moving average has acted as an area of technical resistance for the last several days. Once again, this average might be an area a futures trader may look to get short from, or where a trade may try to catch a switch in direction.

The weekly chart of the Japanese Yen futures (see chart below) clearly shows that the bears are still controlling weekly direction, thought the real test will be at the 13-week moving average (blue – 1.2764). So, the simple question here is can the bears keep up the pressure, or will futures traders who have been long look for an opportunity to fire back?

The daily chart of the September 2011 Japanese Yen futures contract (see chart above) shows that the 5-day moving average (red – 1.2931) has crossed below the 25-day moving average (blue – 1.2991), which is an indication of technical weakness. If the traders can hold the market below the 5-day moving average, then futures traders might see the Japanese Yen test the bottom of the bull-flag technical formation (outlined in blue).

A final thought about currency futures trading. Beware of what looks obvious. Beware of the market lulling you into a false sense of security. Beware of your thinking that comes from your ego. Beware of those things and in my opinion you are ready for battle. Good luck and good trading.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the 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: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Trading, Japanese Yen futures, Technical Analysis

As futures traders get back into the swing of the currency markets this week, the big four currency futures contracts are up against the U.S Dollar. The question for futures traders currency futures trading today is are these moves in the big four technically significant, or are the bounces from yesterday’s lows just an opportunity for bears to regroup? Let’s take a closer look at the currency futures market and see what we can deduce when applying technical analysis.

The weekly chart of the British Pound futures (see chart below) clearly shows that the bulls have control and are very close to testing the bottom of an upward channel. Futures traders failed to hold the market above the 52-week moving average (green – 1.6067) and now the question is can the bulls hold the British Pound above the bottom of the bottom of an upward channel?

The daily chart of the September 2011 futures contract (see chart above) clearly illustrates the sell-off that began a few weeks back. The question when looking at the daily chart is where do the bulls dig in and try to hold the market up? A close back above the 52-week moving average could be considered technical bullish, though the bulls would have some work to do.

The weekly chart of the Canadian Dollar futures (see chart below) shows that the bears are holding the Canadian Dollar below the 52-week moving average (green – 1.0122). Notice that futures traders on the long side ran into stiff technical resistance at and around the 13-week moving average (blue – 1.0253) last week.

The daily chart of the September 2011 Canadian Dollar futures contract (see chart above) shows the market trading within a significant area of technical support (green rectangle). After seeing the drop in the Canadian Dollar yesterday and the failure of the bears to follow through today I would be a little hesitant to want to jump in on the short side. If the bulls are able to push the market back above the 52-week moving average, futures traders might see a testing of the 5-day moving average (red – 1.0164) soon after.

The weekly chart of the Euro Currency futures (see chart below) shows that the bears are currently in control and appear poised to test the pivotal cycle low of 1.3011. A break below this cycle low in my technical opinion, is not as technically significant as say a break below the bottom of the bear-flag technical formation (outlined in red).

The daily chart of the September 2011 Euro Currency futures contract (see chart above) clearly shows that the bears not only busted through the bottom of a bear flag formation (outlined in red) but also pierced the low of the bear flag technical formation (1.4041). Futures traders did defend the area just above the 52-week moving average (1.3935), which can be interpreted as hope for the bulls.

The weekly chart of the Japanese Yen futures (see chart below) shows that the bears who were bold enough to short the technical weakness we saw on Monday are looking strong today. The question now is can the bears continue their march downwards, or will the bulls look to dig in at the bottom of the upward channel (outlined in red)? A break below 1.5768 and the technical structure of the weekly chart will change.

The daily chart of the September 2011 Japanese Yen futures contract (see chart above) clearly illustrates technical weakness. Not only have futures traders broken through key levels of technical support; the short-term technical structure has also changed. The question now is simple. Is the current move in the Japanese Yen to the downside created by bears shorting the market aggressively; or more about the bulls laying off some of their risk and taking some profits?

A final thought about currency futures trading. The currency futures market are getting ready to rollover, so some of the volatility we might see could be directly related to the rollover. So once again, futures traders be focused, prepared and remember you do not have to be married to any single trade. Good luck and good trading.

Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing technical analysis in the 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: British Pound futures, Canadian Dollar futures, currency futures, Currency Futures Trading, Euro Currency futures, Futures Trading, Japanese Yen futures, Technical Analysis