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Did the Euro Finally Break?

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A much bigger rally could soon be underway.

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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: Has the euro finally launched a new downleg? Without confirming Thursday's drop on Friday, a much bigger rally could soon be underway.

Dollar Basket
Sep Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
81.45's recovery Wednesday was extended sharply higher Thursday. A second consecutive higher close Friday - preferably above 82.10 - would confirm a new rally leg is underway.

Eurodollar
Sep Contract EC; (NYSEARCA:FXE)
Testing and retesting of 1.3333 finally gave way to sharply lower lows Thursday. The delay requires a second consecutive lower close Friday to confirm that a new downleg is actually underway, preferably under 1.3220.

Gold
Oct Contract GC; (NYSEARCA:GLD)
Wednesday's failure to confirm Tuesday's breakout enabled a deeper pullback Thursday that held its 1405.50 pullback limit. A retest of Wednesday's 1428.30 opening gap is now likely.

Silver
Dec Contract SI; (NYSEARCA:SLV)
Wednesday's key reversal wasted no time filling both outstanding gaps below down to 23.80. A retest of Wednesday's 24.93 opening print is now likely.

30-Year Treasury
Sep Contract US; (NYSEARCA:TLT)
Thursday's initial follow-through from Wednesday's drop back to 132-10 held a test of 131-30 instead of closing under it to confirm momentum had reversed down.

Crude Oil
Oct Contract CL; (NYSEARCA:USO)
The shock to the system of having probed the 110.65 target temporarily up to 112.25 was still being absorbed Thursday. There is no new signal.

Natural Gas
Oct Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Thursday's early strength to test 3.65 ultimately created extra room to absorb a negative knee-jerk reaction to the EIA report down to 3.51. The recent range held its probe from above, and recovered into the close above 3.57. The rally can now extend so long as 3.54 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.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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