Falling Equities Pressuring Commodity-Linked Currencies

Weakness in global equity markets is helping to put pressureon the Euro and the commodity-linked currencies. Weakness in global equity markets is helping to put pressureon the Euro and the commodity-linked currencies. Risk sentiment seems to haveshifted overnight with investors becoming more risk averse. Profit-taking andposition squaring ahead of the start of the U.S. earnings season appears to bethe catalyst behind this morning’s early weakness.

The Euro is trading inside of major retracement zone at1.2609 to 1.2782. The current chart pattern suggests a developing daily closingprice reversal top. This could lead to the start of a 2 to 3 day break. At thistime 1.2609 is holding as support. A failure to hold this level could triggerthe start of an acceleration to the downside.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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