December Euro currency (E6Z26) futures present a buying opportunity on more price strength.
See on the daily bar chart for the December Euro currency futures that this week’s price action has produced a bullish upside “breakout” from a basing area at lower price levels. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bullish posture as a bullish line crossover signal occurred in early July, whereby the blue MACD line crossed below the red trigger line. Both lines are also now trending higher.
Fundamentally, this week’s FOMC meeting of the Federal Reserve was not digested well by the marketplace, on worries the Federal Reserve is too far behind and will remain behind the curve on fighting inflation. That’s bearish for the greenback.
A move in the December Euro currency above chart resistance at this week’s high of 1.1597 would become a buying opportunity. The upside price objective would be 1.1950, or above. Technical support, for which to place a protective sell stop just below, is located at 1.1470.
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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