Currency Futures Trading Thursday’s Currency Action 9/10/09

Discussion in 'Financial Futures' started by Rae, Sep 11, 2009.

  1. Rae


    This has been an exciting week in the currency futures market. I would also like to point out that I have changed from the September 2009 currency futures contract to the December 2009 currency futures contracts.

    In today’s action we saw both the Euro Currency and Japanese Yen install new weekly highs again, while the Canadian Dollar fell to .9192 before bouncing back and closing the session at .9271.

    With tomorrow being Friday and volume expected to be shifting from the September contracts to the December contracts it can get a little wild, so be aware of the situation.

    The daily chart of the December 2009 Canadian Dollar (see chart below) shows that the Canadian Dollar is currently holding just above the 5-day moving average (red - .9268).


    The question tonight is will this area be a launching pad for the Canadian Dollar bulls, or will the bears make a stand? Read link removed to get my technical and strategic perspective for the Canadian Dollar.

    The Euro Currency pierced yesterday’s high in today’s session and installed a new high at 1.4613 (see chart below).


    You can clearly see that the Euro Currency is finding technical resistance at the top of an upward channel (outlined by black trendlines). Couple this technical structure with the Divergence in the Stochastic Indicator and the Euro Currency might be ripe for a potential pull back. Read my Technical Recap, Update and Outlook for Friday September 11, 2009 to get my perspective on how a currency trader might play the current technical structure of the Euro Currency.

    The Japanese Yen daily chart (below) shows that the Japanese Yen bulls continue to use the 5-day moving average (1.0858) as a launching pad.


    The question tonight is do the bulls take some profits off the table as they did last Friday or will the bulls try and punish the bears? Again, read tonight’s currency futures trading report to get my read on tomorrow’s technical outlook.