Daily Spot: Currencies
A weekly summary of one complex, including daily updates of other developments elsewhere.[pay]
Dollar Basket Jun (DXM) Sellers may have lost more than steam. Friday’s session didn’t extend the trend below its gap down, so neither did Monday’s, since Mondays tend to mimic Friday’s behavior. In fact, the session formed a Pivot Reversal by gapping up, reversing down to a new trend low, and then recovering to close back in positive territory. Closing above the morning’s high would have been more reliable. Still, sellers have lost a lot of traction, and recovering 73.25-73.35 would be very bullish.
Gold Jun (GCM) Losing its glitter. Sunday night’s gap up and new high at 1577.40 was reversed $37 on the overnight news. But the plunge was still recovered to retest the gap’s 1527.20 opening print. Post-close action plunged to attack 1540.00. Closing under 1557.00 would have been bearish, but it was still being tested at the pit close. So far, that weakness is only overnight. A second consecutive lower close would confirm a downleg underway targeting 1508.00.
30-year Treasury Jun (USM) Eking higher is no longer an option. Fresh highs Monday extended to maintain a close above 122’18. Closing above 122’28 would target 124’00 and 125’06. But the upleg’s character above 122’28 should become very aggressive and steep if valid. Closing under 121’30-122’02 would invalidate the uptrend, but not if the same session had gapped down.
Crude Oil Jun (CLM) Another fresh, distributive high. Sunday night’s drop to 110.82 reacted up sharply to probe new highs at 114.83. The close settled back down to test the two prior highs around 113.50. Closing under 112.40 would signal momentum reversing down for a new downleg.
Natural Gas Jun (NGM) Didn’t play while the cats were away. Not much reaction to Sunday night’s news. But not much retracement, either. That keeps the 4.80 target intact, so long as 4.62 holds as support.
[/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), Weekender (Fri).