Looking ahead to Tuesday by reflecting back on Monday's trading action
Is the US Dollar setting up for a turn to the downside? And despite yesterday's strong close, no real change technically for Energies
CURRENCIES: 02/02/10 Higher closes yesterday for the Canadian and Aussie Dollar, Euro Fx and Swiss Franc while lower for the Japanese Yen, British Pound and dollar index. The euro made a new recent low before closing higher in reversal type action while the franc just closed higher. Both are still in downtrends. The yen settled lower needing to hold the 11100 area while have good resistance above 11200.. The Canadian Dollar also made a new recent low before settling higher in reversal type action needing to hold the 9300 area while trading near the lower end of the range of a sideways going back to the beginning of October. The Aussie dollar closed higher this time also making a new recent low first in reversal type action. Conversely, the dollar index closed lower after making a new recent high. What all this means is that the dollar may be setting up to head lower in a least the near term. The rest of this week's action should tell the story!
ENERGIES: 02/02/10 . Sharply higher closes yesterday for crude and heating oil along with the rbob and natural gas but no changes technically. The crude, heat and rbob have room for a good retracement with their respective resistance areas higher up because of their recent sharp drops. Gas, however, is now in strong looking resistance area. All three have been selling off since their reversal type action on January 11th.