Last week Friday, we took a look at a few markets that had pronounced trendlines, stochastics and 20 day moving averages worth taking a look at. Today, lets take a look at a few BEAR flags that have formed over the past week!
From the overnight session, the aussie is up 15, the pound is up 24, the euro is up 74, the yen is down 4, the swiss is up 62, the dollar is down 39.
The US recovery has continued and Euro zone 3rd quarter growth has been slightly better than some expectations, but global economic sentiment is still not strong enough to temper bearish sentiment toward most commodity markets.
Today’s Pre-Dawn will be dedicated to trendlines and stochastics and I will highlight 4 markets worth a good look (with the charts attached).
From the overnight session, the aussie is up 5, the pound is down 5, the Canadian is up 6, the euro is down 27, the swiss is down 21, the dollar is up 12.9.
In fact, given very strong US data at the end of last week, almost anything positive from the US data window this morning is likely to shore up respect for the 85.00 consolidation support zone.
For today’s trading session maintain the option positions in the Canadian Dollar.
In fact, seeing Euro zone producer prices in August contract again simply highlights an environment where the Euro needs to move even lower until the exchange rate allows the Euro zone to borrow strength from its trading partners.
Swiss Franc…The September contract will be rolling into December later next week. I want to take a short term shot at a possible correction over the next few days. If this fails to bounce here and makes a new low, we will exit right away.