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The Euro May Fall Hard if a Recovery Is Delayed Any Further

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Thursday's dip suggests the decline has resumed.

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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: The euro had immediately tested its bounce limit Wednesday without extending higher, so Thursday's dip suggests the decline has resumed.

Dollar Basket
Jun Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Ranging sideways Thursday (since Wednesday actually) suggests that the trending attempt will be false, and reversed more substantially in the opposite direction.

Eurodollar
Jun Contract EC; (NYSEARCA:FXE)
Having held the 1.2955 bounce limit Wednesday, Thursday's gap down is presumed to be resuming the decline. One more blip-up to 1.2955 can't yet be discounted.

Gold
Apr Contract GC; (NYSEARCA:GLD)
Wednesday's pullback from the 1615.00 target never extended under a relevant level to suggest that momentum might be reversing down. Instead, Thursday's quick recovery spent the balance of the session ranging around 1615.00, but yet extending higher or being rejected.

Silver
May Contract SI; (NYSEARCA:SLV)
The recent dip to 28.65 support helped to confirm a bottom was forming. Thursday's sharp rally to immediately probe above the 29.10 buy signal spent the session hovering just above it. A second consecutive higher close Friday would confirm, so long as pullbacks hold above 29.10.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Despite gapping down Wednesday, another gap down Thursday was required if the trend was actually reversing down. Instead, the session traded calmly around Wednesday's range.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Having stopped short of 54.00, Wednesday's recovery attempt was underwhelming, but left the door open to an overwhelming rally Thursday. Instead, recent tests of the 91.90 pullback limit was repeated. A second consecutive lower close Friday would confirm momentum has reversed down.

Natural Gas
Apr Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Wednesday's shallow optimistic dip resolved up Thursday to test the 4.00 target, then reacted back down to Wednesday's lows under 3.90. Any lower close would have -- and still could -- signal a bigger drop underway, confirmed under 3.85.

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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