March Euro currency (E6H27) futures present a selling opportunity on more price weakness.
See on the daily bar chart for the March Euro currency futures that prices have moved to the bottom of a sideways trading range and the bears have gained some momentum. A move in prices below the technical support line seen on the chart would give the bears more power as it would be a downside price breakout from the trading range.
Fundamentally, recent U.S. economic data has been mostly upbeat, which favors the U.S. dollar ($DXY) over the Euro currency, as the Federal Reserve is now seen as a virtual lock on raising interest rates at its December FOMC meeting. Meantime, rising energy prices have hurt the European Union’s economy more than the U.S. economy. Also, there is been political tensions in France that have helped to pressure the Euro currency.
A move in the March Euro currency below chart support at the October low of 1.1173 would become a selling opportunity. The downside price objective would be 1.0800, or below. Technical resistance, for which to place a protective buy stop just above, is located at 1.1338.
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 directly have a position 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.