Currencies and Metals Sat Tight Wednesday

By Rod David  SEP 05, 2012 2:55 PM

Although stocks fluctuated widely, there was mostly narrow ranging among currencies and metals.

 


The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.

Today’s Highlight: Volatile stock market action was ignored by mostly narrow ranging among currencies and metals.

Dollar Basket
Sep Contract DX; (UUP), (UDN)
Another day, another narrow range around prior lows. Still no greater likelihood of extending lower.

Eurodollar
Sep Contract EC; (FXE)
Like the dollar, Wednesday’s action in the euro only ranged narrowly around its prior highs. Still no greater likelihood of extending higher.

Gold
Dec Contract GC; (GLD)
Tuesday’s test of the 1700.00 target was consolidated Wednesday. The shallow ranging suggests that optimism is extreme, and a fresh high would be vulnerable to whipsawing down.

Silver
Sep Contract SI; (SLV)
Flat-to-higher firming Wednesday further consolidated recent gains, still targeting 33.00 so long as 31.80 and 31.30 were to hold any test as support.

30-year Treasury
Dec Contract US; (TLT)
Despite having held its test of 151-22 resistance Tuesday (150-26 basis Sep), Wednesday’s shallow reaction down underscores there not being an attractive risk:reward setup. However, now closing under 150-18 would trigger a corrective dip targeting 149-22.

Crude Oil
Oct Contract CL; (USO)
Tuesday’s impatient selling pressure extended lower Wednesday morning, but recovered positive territory into the noon hour. At least Tuesday afternoon’s lows held as support to suggest that sellers had lost momentum. Closing above at least 96.15 would start to signal momentum having reversed back up.

Natural Gas
Oct Contract NG; (UNG), (UNL)
The recent bounce could have extended through its 2.89 target that was met Tuesday had the narrow consolidation resolved up immediately. But Wednesday’s open gapped down under 2.82 support. The rally can resume to 3.08 so long as 2.76 now holds as support.

Editor's note: Rod's analytical techniques are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He applies his techniques live intraday, primarily to S&P futures, at RodDavid .com.
No positions in stocks mentioned.

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