Daily Spot: Currencies

A weekly summary of one complex, including daily updates of other developments elsewhere.[pay]

Dollar Basket Mar (DXH) If at third… try, try again. Monday’s open gapped up to probe fresh highs yet again. Friday’s gap up to fresh highs was unlikely to gain traction, and did not. Monday’s was no likelier. And its close fell back into negative territory.

The retracement tested the range’s 81.10 upper-end as support. Back under 80.90 would trigger a corrective dip targeting 80.50. Delaying a corrective dip too much longer would make the dip become a new downleg when it inevitably does happen, and no longer likelier to recover.

Gold Feb (GCG) Not exploiting one setup often invites the other. Yet another intraday test of 1365.00 Monday whose break would resume the decline. Still no probe above above 1378.00 whose recovery would trigger a corrective bounce targeting 1387.50-1390.00, and probably 1403.00-1404.00.

30-year Treasury Mar (USH) That’s not a glass ceiling. Probed 121’14 Monday after peaking 1 tick short of it Friday. Its recovery would negate last week’s chipping away at support, instead of resuming the decline formed by its pattern targeting 118.00.

Crude Oil Feb (CLG) Another lower low’s rejection fails to gain traction. Monday’s gap up held repeated tests of 89.35-89.40 like Friday, instead of recovering it to trigger a rally targeting 91.70 (also like Friday).

Natural Gas Feb (NGG) Holding support is only half the battle. Monday’s ranging around 4.40 extended instead of bouncing. The window for resuming the rally remains open, but not too long past Tuesday’s open.

[/pay]

Share your questions and comments on this post in the blog, or in the chartroom…

Daily Spot coverage schedule is: Currencies (Mon), Metals (Tue), Energies (Wed), Rates (Thu), Softs (Fri, coming).