Futures and FX Technical Analysis

FX Market as of 9:00 GMT (5:00 AM EST)

EUR/JPY (Euro vs US Dollar)

- Euro fell like stone as bids around the psychologically important 1.4500 handle failed to stem the stampede of the dollar bulls. As dollar resumes its long term move, a further move to the downside will most likely see the pair head lower and test the bids around 1.4152, a level marked by the Sept 19 intraday spike low. A sustained momentum on the part of the greenback traders will most likely see EUR/USD drop below the psychologically important 1.4000 handle and test support around 1.3882, a level defended by the Sept 11 daily low.

GBP/JPY (British Pound vs US Dollar)

- Sterling followed its European counterparts as pair tumbled toward the psychologically important 1.8000 handle following broad based dollar strength. As dollar traders push GBP/USD lower and set their sights on 1.7916, a level marked by the Sept19 intraday spike low, a further move to the downside will most likely see the pair gain further downside momentum and target the bids around 1.7447, a level defended by the Sept 11 low, thus seeing pair break option barriers around psychologically important 1.7500 figure, with further support seen around 1.7231, a level marked by the Feb-Apt2007 consolidation range low.

Equities

S&P 500 December Emini Futures Contract (EZ U8)

- Emini futures contract remained in a tight trading range as traders awaited an outcome of the US bailout decision. As contract once again reverses direction and heads below 1200 figure, a level defended by the 23.6 Fib of the 1443-1136 S&P selloff, a further move to the downside will most likely see the Emini bears aim for the bids around 1180, a level marked by the Sept 24 intraday spike low. A further move lower will most likely see the contract support at 1136, a level established by the Sept18 low.

Interest Rates

Eurodollar June 09 Futures Contract (GE M9)

- Eurodollar futures continued to bounce in a tight trading range as both sides awaited outcome of the global credit crunch. In case futures contract move lower and target the bids around 96.58, a level defended by the 38.2Fib of the 95.30-97.38 Eurodollar rally, a further move to the downside will most likely see Eurodollar bears target bids around psychologically important 96.50 figure. A move above 97.00 handle will most likely see the contract aim toward recent higher around 97.75.

NYMEX/COMEX Futures

Crude Oil November Futures Contract (CL X8)

- Crude oil futures tumbled below 105.00 handle as traders once again set their sights on the psychologically important 100.00 handle, a level defended by the number of key support zones, with most notable levels including 50.0 Fib of the 50.00-147.00 Crude oil rally, a Nov 2007-Feb 2008 consolidation high and March 20 swing low. A break below the psychologically important 100.00 handle will most likely see the contract drop lower and test the bids around 95.00 figure, with further support seen around recent lows at 90.42, a Sept 16 low.

Natural Gas November Futures Contract (NG X8)

- Natural gas futures resumed their downward slide as bears once again gained an upper hand and pushed the contract lower. A further move to the downside will most likely see the contract break below 7.500 figure and target recent lows around psychologically important 7.000 handle. A sustained break to the downside will most likely see the contract head lower and target the bids around 6.600, a level defended by the Oct 2007 consolidation lows, with further support seen below psychologically important 6.000 handle at 5.720, a Sep 2007 contract low.

Gold December Futures Contract (GC Z8)

- Gold futures continued to trade within a large trading range as upside momentum kept failing around psychologically important 900 handle. In case gold bulls manage to get control of the price action, a further move to the upside will most likely see the contract head above the psychologically important 900 handle and target offers around 926, a level marked by the Sept 18 spike high. If gold bears take over the direction of the price action and push the prices lower, a further move to the downside will most likely see the contract head lower and target the bids around 840 figure, a level defended by the 38.2 Fib of the 740-923 bull swing. A further move to the downside will most likely see the metal retreat further and test defenses around 810 figure, a level defended by the 61.8 Fib of the 740-923 bull swing

CBOT Grain Futures

Corn December Futures contract (C Z8)

- Corn futures remained in a consolidation range marked by a large triangle that dominated the price action since August. As bears regain control and push the contract lower, a move to the downside will most likely see the contract head lower and target the bids around the psychologically important 5.000 handle, a level defended by the March 24 and Aug 12 lows. A sustained momentum to the downside will most likely see the contract encounter support around 4.840, a level marked by the Jan 24 low, with further support seen around 4.661, a level defended by the 78.4 Fib of the 3.754-7.992 Corn rally.

Wheat December Futures Contract (W Z8)

- Wheat futures continued to head lower toward the psychologically important 7.000 handle as bears once again took the charge of the price action. A further move to the downside will most likely see the contract target the bids around 6.500 figure, a level defended by the combination of the 78.6 Fib of the Apr 2007-Apr 2008 Wheat rally and Oct-Dec of 2007 consolidation range low. A sustained momentum to the downside will most likely see the contract head lower and target support around 5.500 figure, a level defended by the Jul 2007 lows.

Soybean November Futures Contract (S X8)

- Soybean futures managed to gain downside momentum with contract ticking down toward the psychologically important 11.000 handle, a level defended by the Sept 18 intraday spike low, following retest of the break of the large Head and Shoulders pattern. A further move to the downside will most likely see the contract head toward 10.500 figure, a level marked by the Apr 1 spike low with further support seen around 10.107, a level defended by the 61.8 Fib of the 6.240-16.366 Soybean rally. A sustained momentum to the downside will most likely see the contract target psychologically important 10.000 handle, a level marked by the lower boundary of a downward sloping channel.

Trade The News Staff
Trade The News, Inc.

Legal disclaimer and risk disclosure