Comments for Monday, November 17, 2008

Looking Ahead to Today By Reflecting back at Friday’s price action

CURRENCIES:

Higher closes on Friday for the Euro Fx, Swiss Franc, Canadian Dollar and Aussie Dollar, while lower for the Dollar Index. All of the currencies are still in downtrends except the yen.

The euros settled higher again, but are in a large bear triangle while attempting to form a bottom while the franc continues to look lower now in a bear pennant. The yen settled lower this time but is in a bull pennant still acting like it's on the way towards testing its contract highs.

The Canadian Dollar also closed higher but is in a bear flag while trying to form a possible bottom in a bear market. The pound closed higher but looking very weak while in a bear pennant.

The Aussie Dollar settled lower but is trying to form a bottom in a downtrend overall like most of the currencies at this time. The dollar closed lower but is in a bull pennant looking like it will continue its uptrend overall.

Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.