December Euro currency (E6Z26) futures present a selling opportunity on more price weakness.
See on the daily bar chart for the December Euro currency futures that prices are trending lower and are closing in on pushing below key technical support at the June low. Bears have the near-term technical advantage as “the trend is their friend.”
Fundamentally, the U.S. economy remains resilient, with the Federal Reserve likely to keep U.S. interest rates steady, if not raise them in the coming months, due to inflation concerns. That’s bullish for the greenback ($DXY) and bearish for the Euro. Also, the U.S.-Iran war and the related energy crunch has hurt the Euro zone economy more than the U.S. economy.
A move in the December Euro currency futures below chart support at the June low of 1.1408 would become a selling opportunity. The downside price objective would be 1.1000 or below. Technical resistance, for which to place a protective buy stop just above, is located at 1.1600.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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