SubscribeDaily Futures Commentary June 12, 2009
Friday, June 12, 2009
It may have taken all week, but the foreign currency markets are finally responding to last week’s reversal tops. If you recall commentary from earlier in the week, last week the September Euro, September British Pounds, September Swiss Franc and September Canadian Dollar all posted weekly closing price reversal tops.
The follow-through breaks on Monday confirmed the reversal tops but choppiness throughout the week put fear in some traders that these technical patterns would fail. The weakness in the foreign currencies this morning is indicating that the bearishness created by the reversals is finally kicking in. This could mean that today will be a trend day with the potential for a substantial sell-off.
The stronger Dollar is putting pressure on commodity markets this morning. Losses are heavy across the board in overnight trading and could accelerate to the downside if the Dollar continues to strengthen throughout the day as anticipated.
The brunt of the strength in the Dollar is being felt in the precious metals complex where each market is experiencing a sharp sell-off. August Gold has retraced most of yesterday’s rally and is now poised to …
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