Eurodollar tests support, launches rally

A daily summary of high-profile members of several complexes. View a more detailed discussion of each chart at the end of today’s Market Wrap.

Dollar Basket September Contract (DX, ETF: (UUP, UDN)) Tuesday’s shallow dip was broken easily after a modest gap up failed. The fresh lows retraced the week-old spike up back to 80.00support, attacking 79.95 whose break would essentially taret new lows under 79.75.

Eurodollar September Contract (EC, ETF: (FXE)) It was too long to be optimal, but the recent testing of 1.3590 support finally launched a rally effort Wednesday that all but fulfilled its 1.3655 target. Extending to fresh highs above 1.3700 requires that pullbacks now hold 1.3700 as support.

Gold (COMEX:GCQ14) August Contract (GC, ETF: (GLD)) Tuesday morning’s attack on 1326.00 was probed Wednesday morning, even before the afternoon’s FOMC Minutes release. Consolidating there broke higher in reaction to the afternoon’s FOMC Minutes released after the close. Fresh highs tested 1332.00, whose break would target 1352.00 if recovered through Thursday’s close. Closing under 1326.00 would reverse momentum down.

Silver (COMEX:SIU14) September Contract (SI, ETF: (SLV)) Wednesday’s immediate recovery back to 21.21 didn’t negate the prior two sessions closing under 21.05 support, but instead offered the last opportunity to clean out weak-handed buyers before launching a downleg. Not much of an opportunity, or not much of weak-handed buyers. The 21.21 test was still ongoing, but otherwise holding as resistance.

30-year Treasury September Contract (US, ETF: (TLT)) Wednesday’s initial dip to 136-09 was recovered aggressively in reaction to the afternoon’s FOMC Minutes, surging to a fresh high attacking 137-00. The fresh high now raises the pullback limit to 136-14. Closing under 135-26 would now signal momentum reversing down. Meanwhile, 137-22 is in-play.

Crude Oil (NYMEX:CLQ14) August Contract (CL, ETF: (USO)) The drop extended to probe under its first objective of 102.50. Closing below it confirms the next lower target at 101.00 remains in-play, as well. Bounces now have room up only to 102.90 to maintain the decline’s momentum.

Natural Gas July Contract (NG, ETF: (UNG, UNL)) It wasn’t much to ask that Wednesday’s buyer produce a close back above Tuesday’s 4.21 post-open high — Tuesday’s close was attacking it to within 2-3 cents. But Wednesday’s session essentially consolidated at and/or under it, certainly not blowing through it as would have been optimal confirmation of the 4.13-4.15 targeted support holding.


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About the Author
Rod David

Rod David develops analytical techniques that are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He primarily analyzes S&Ps, generating several round-turn candidates daily. Rod publishes "Trading Plan" and more each session at the blog

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