SubscribeDaily Futures Commentary August 14, 2009
Friday, August 14, 2009
As the week winds down, the focus today will be on three currency markets which formed closing price reversal tops last week. This week the September Euro, September British Pound and September Canadian Dollar confirmed their technical reversals from last week but only the Euro is in a position to close higher for the week.
The September Euro is trading inside of a major range formed by 1.3832 to 1.4449. The retracement zone inside of this range is 1.4141 to 1.4068. This week the Euro broke into this retracement zone only to find support at 1.4087.
The subsequent rally from the low helped form another minor range of 1.4449 to 1.4087 with a retracement zone at 1.4268 to 1.4311. Yesterday’s high completed a test of this retracement zone when it stopped at 1.4329.
From a technical standpoint, this action was to be expected. If new sellers stepped in at 1.4329 then look for the start of another leg down to take out the bottom at 1.4087 and turn the main trend down.
Fundamentally, an unexpected improvement in Euro Zone economies during the second quarter helped firm …
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