Futures and FX Technical Analysis

Daily Forex Technicals | Written by Trade The News | Sep 15 08 11:35 GMT |

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

USD/JPY (US Dollar vs Japanese Yen)

Japanese Yen bulls took over the price action and broke below the internal upward sloping trendline that dominated the price action since March with the latest price action seeing USD/JPY breaking below the psychologically important 105.00 handle, a level defended by the 38.2 Fib of the 95.76-110.67 US dollar rally. A further move to the downside will most likely see the pair head lower and test the bids around 104.00 figure, a level established by the Jul 16 low and a bullish hammer candlestick pattern. A further break to the downside will most likely see the yen bulls extend their gains and test the dollar bids around 103.00 figure, a level marked by the May consolidation lows and 50.0 Fib of the 95.76-110.67 US dollar rally. Further support is seen around 101.40, a level created by the 61.8 Fib of the 95.76-110.67 US dollar rally

GBP/JPY (British Pound vs Japanese Yen)

Sterling bulls where in full retreat as cross once again fell below psychologically important 190.00 handle and aimed at recent lows around 185.00 figure, a level defended by the Sep 11 spike low. A sustained break to the downside will most likely see the cross head lower and with sustained momentum to the downside targeting the bids around the psychologically important 180.00 handle, a level established by the 2002-2003 multiple lows.
Equities

S&P 500 September Emini Futures Contract (ES U8)

Emini continued to consolidate within a trading range that dominated the price action since July with the latest move to the downside once again seeing market tumble toward the recent lows around 1210 figure, a level defended by the Sep 11 spike low. A further move to the downside will most likely see the contract extend its decline toward the psychologically important 1200 handle, a level established by the July15 low and the end of the May-July equity selloff. A sustained breakout will most likely see Emini gain further downside momentum and target bids around 1185, a level defended by the 50.0 Fib of the 788-1587 equity rally.
Interest Rates

Eurodollar June 09 Futures Contract (GE M9)

Eurodollar futures managed to break above the 97.20 figure a level marked by the Sept 5 spike high and targeted offers around psychologically important 97.50 handle, a level defended by the 78.6 Fib of the Apr-Jun Eurodollar rally. A further move on the part of the Eurodollar bulls will most likely see the contract break higher and aim for 97.68, a level defended by Apr 1 high with sustained momentum to the upside seeing the contract extending its gains toward targeting psychologically important 98.00 handle, a level marked by the Mar 17 high.
NYMEX/COMEX Futures

Crude Oil October Futures Contract (CL V8)

Crude oil futures broke below the psychologically important 100.00 handle, thus breaking 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 sustained momentum to the downside will most likely see oil futures head toward the 90 figure with further move to the downside testing the bids around 85-87 price zone, a level established by the combination of 2007-Feb 2008 consolidation lows, 61.8 Fib of the 50.53-147.72 Crude oil rally and 1.00 Fib extension of the July-Aug oil selloff.

Natural Gas October Futures Contract (NG V8)

Natural gas futures remained in a 7.000-7.700 consolidation range as both sides positioned themselves in the path of hurricane. In case bears manage to gain an upper hand and push 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 managed to hold the psychologically important 750 handle as metal bulls managed to reverse the downside momentum. As gold retraces recent weakness, a further move to the upside will most likely see the contract head higher and test the offers around 780 figure, a level defended by the Aug 15 spike low, A further move to the upside will most likely see the contract head higher and test defenses around the psychologically important 800 handle, a level established by the combination of the 23.6 Fib of the 1000-737 Gold selloff and upper boundary of the downward slopping channels.
CBOT Grain Futures

Corn December Futures contract (C Z8)

Corn futures staged a comeback rally with the day's candle forming a closing bozu candlestick, signaling a strong reversal from current levels. A further move to the upside will most likely see the contract extend its gains and head above 5.740 figure, a level established by the 23.6 Fib of the 7.992-5.044 Corn selloff. A sustained momentum to the upside will most likely see Corn bulls power though the psychologically important 6.000 handle and target the offers around 6.200 figure, a level established by the 38.2 Fib of the 7.992-5.044 of the Jun- Aug selloff and August retrace highs. In case the Corn bears manage to over again reestablish control of the price action and push Corn lower, a further move to the downside will most likely see the contract head lower and target the bids around 5.376, a level defended by the 61.8 Fib of the 3.754-7.992 Corn rally. A sustained momentum to the downside will most likely see the grain target bids around the psychologically important 5.000 handle, a level defended by the March 24 and Aug 12 lows

Wheat December Futures Contract (W Z8)

Wheat futures continued to consolidate recent decline around the 7.200 figure. As bears resume control of the price action and push the contact lower, a further move to the downside will most likely see the contract test the bids around 7.100, a level defended by the Oct-Dec of 2007 consolidation range high. A sustained momentum to the downside will most likely seeing the traders test defenses around the psychologically important 7.000 handle. A further move to the lower will most likely see the bears push the contract lower and target 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.

Soybean November Futures Contract (S X8)

Soybean futures remained on pause as contract continued to consolidate above 11.700 figure, a level defended by the 78.6 Fib of the Apr-June Soybean rally. As bears resume their advance and push the contract toward 11.500 handle a level defended by the 50.0 Fib of the October 2006 - June2008 Soybean rally at 11.303, a sustained break to the downside will most likely see contract break the neck of the large Head and Shoulders pattern, which remains intact on both daily and weekly charts. A further momentum to the downside will most likely see the bears push the contract toward psychologically important 11.000 handle and with a break target bids around 10.500, a level marked by the Apr 1 spike low.

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