Monday's Currency Action 9/14/09

Discussion in 'Financial Futures' started by Rae, Sep 14, 2009.

  1. Rae

    Rae

    What an interesting technical day in the currency futures market. The Canadian Dollar opens Sunday night and then proceeds to tumble, but by the early morning the bulls had recovered most of the early losses. The Euro Currency again made a new cycle high (1.4652), but is this market beginning to lose its’ technical upside momentum? The Japanese Yen finally pulled back, which was almost expected after Friday’s colossal move up.

    The daily chart of the December 2009 Canadian Dollar futures contract shows the break below the 5-day moving average (red - .9254) that occurred Monday (see chart below).

    [​IMG]

    You will also notice that the bulls were able to hold the line in the vicinity of the 25-day moving average (blue - .9177). The question tonight is can the bulls push the market back above the 5-day moving average, or will the bears hold the line. Get in my in depth strategic perspective simply ready

    The daily chart of the Euro Currency shows that the market is testing the top of an upward channel (outlined by black trendlines), which will be a pivotal battle line tonight (see chart below).

    [​IMG]

    The Japanese Yen finally cooled off after the huge move we saw on Friday. The question for currency traders tonight is will we again see the Japanese Yen pull back and regroup and the 5-day moving average (red – 1.0964) before making a another upward move (see chart below)?

    [​IMG]