Monday's Currency Action 9/7/09

Discussion in 'Financial Futures' started by Rae, Sep 8, 2009.

  1. Rae


    Even though today was a holiday in U.S. the currency markets did trade Sunday night and Monday morning in the Globex. The currency markets were traded with very low speculative volume today, with the Canadian Dollar making the only significant move today.

    The daily chart of the September 2009 Canadian Dollar futures contract (below) shows that the Canadian Dollar broke through the top of a bull flag technical formation (outlined by green trendlines). With a lot of U.S. traders taking the last day of summer off the Canadian Dollar probably did not meet much technical resistance at around the top of the bull flag formation. The question currency traders face now is will the Canadian Dollar continue to run or was this rally a pure technical play to take out weak shorts? Read my currency futures trading report to get my in depth analysis in the currency futures market.


    The Euro Currency takes out Friday’s high (1.4330) in Monday’s trade (see daily chart of the September 2009 Euro Currency futures contract below).


    The chart shows that the Euro Currency held above the 5 (red – 1.4276) and 25 (blue – 1.4261) moving averages, which will now be considered a pivotal area of technical support. The question for currency traders now is will we see the Euro Currency bulls continue to push the market upward, or will the Euro Currency bears make a stand?

    From the frontlines of the Canadian Dollar and Euro Currency we go half away around the globe to the battlefields of the Japanese Yen (see chart below).


    The daily chart of the September 2009 Japanese Yen futures contract (above) clearly illustrates the break below the 5-day moving average (red – 1.0786), which hasn’t occurred since August 24, 2009. This might be a technical indication that the Japanese Yen is losing some technical upside momentum. So, what other technical signs might there be in the Japanese Yen that might give currency traders ideas on how to play the technical structure of the Japanese Yen? Read my Technical Recap, Update and Outlook for Tuesday September 8, 2009 to get my latest analysis in the currency futures market.

    You can also join me in the Trading War Room for live up to the minute analysis and trading ideas. Simply send me a private message. To get my in depth analysis by email simply send me a private messgae. Thanks and I hope you enjoyed today currency recap.