In Forex and Futures Commentary

The most notable levels that got hit from yesterday ‘s post were: EUR sell at 1.3735, GBP buy at 1.7270 and CHF buy at 1.1220. If used in good judgment it was a strong day and I’m hearing that many people are getting used to using them, which I’m obviously glad to hear. Very little drawdown on all three (under 10 pips) and hopefully we’ll be running in synch in no time here.

Main points today:

-Consolidation today across most markets; seeing short term corrections taking place around key areas this morning – short profit taking noted across currency markets

– S&P 500 digs deeper towards its last major lows at 767. Despite any interest rate cuts, consumer confidence, or lack thereof, is winning this battle and I’m now looking for a close below 960.65 to target 855. 960.65 is the 762 retracement of the 1586-767 move, and price is now consolidating around it. UJ and carry pairs are still safer sells than buys on pullbacks for me, though we’re showing signs of near term reversal tonight.

-Other world indices showing minor signs of improvement tonight but mostly non-directional and choppy thus far.

-Crude oil correction to 89 as I write on a bounce from 86 and now showing signs of short term consolidation/correction, much like the indices. Could be a larger pullback here today.

-Gold hit 922 and pulling back again. Behaving in the same manner as other markets today.

-The Dollar Index still toying with the 81.80 50% retracement and consolidating around here as mentioned yesterday

Bottom Line:

“If it ain't broke don't fix it.” Short term pullbacks for now, short term moves in play. Strategy is still largely unchanged since yesterday. We’re seeing the correction I was looking for in terms of the currencies, though it could be short lived. EUR, GBP, AUD, I could go long or short on based on bounces in these consolidated ranges with shorts still the safer of the plays, but again not afraid to buy. Still looking for holds to sell on moves higher. EUR just closed the gap that was formed over the weekend.

Levels:

EUR/USD has sells at 1.3800, 1.3880, 1.3900, 1.3975, 1.4185, 1.4150, buys at 1.3705, 1.3661, 1.3637, 1.3580, 1.3545

GBP/USD has sells at 1.7410-20, 1.7590, 1.7650, 1.7710, buys at 1.7175, 1.7130, 1.7050

USD/CHF has buys at 1.1150, 1.1090-1.1100, 1.0920-1.0910, sells at 1.1361, 1.1443, 1.1488-1.1500

USD/JPY has sells at 101.45-50, 102.80, 103.22, 103.70, 104.90-105.00, buys at 99.30, 98.60, 97.70, 95.80

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