Risk-Averse Traders Seek Safe-Haven of Dollar.
Tuesday, June 30, 2009
by Bob Kozak of C3I Capital Management, LLC
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Dollar Index (DXU9): The Dollar opened lower at 79.81, but rose sharply after a weaker than expected Consumer Confidence report sent equity markets tumbling and traders seeking the safe-haven of Treasuries and Dollars. Prices rose to a mid-day Hi of 80.64, before trailing lower into the close of 80.42, up 31 tics. The s/t trend remains 'negative' w/improving momentum indicators. Traders will key on equity markets ahead of Thursday's Non-Farm Payroll Report and the shortened trading week. Continued flight to quality should support higher prices. A higher open should find Resistance at 80.81 and 81.20, while an open below 80.25 may find Support at 79.86 and 79.30. Euro Currency (ECU9): The Euro opened higher at our Pivot level of 1.4127 and retraced to a morning Lo at our initial Support level of 1.3998, as pressure from safe-haven buying in the Dollar weighed on prices. A mid-day bounce send prices higher into the close of 1.4040, down 41 tics. The s/t trend remains 'positive' w/firm momentum indicators. Longs should tighten 'stops' or buy 'puts' to reduce exposure. A lower open may find Support at 1.3976 and 1.3912, while an open above 1.4062 should find Resistance at 1.4126 and 1.4212.
Recent articles from this author
- Dollar 'Pauses' Ahead of FOMC Results. - Tuesday, August 11, 2009
- Cable Breaks Out on PMI Report, DX Drop. - Monday, August 03, 2009
- Sterling 'Shines' As Housing & Stocks Prices Increase. - Thursday, July 30, 2009
- Chinese Equity Correction Sparks Flight to Quality in DX. - Wednesday, July 29, 2009
- Canadian Sets New High for 2009. - Monday, July 27, 2009
About the author
Bob Kozak, Currency Futures Analyst
C3I Capital Management, LLC Bob Kozak is the Senior Currency Futures Analyst and Managing Principal at C3I Capital Management, LLC. He has been involved in the financial markets since 1978, when he was recruited as portfolio strategist for a major Wall Street firm. With a degree in Mathematics from the University of Massachusetts, he was drawn towards technical analysis. He moved into the retail sector as a Certified Financial Planner, assisting clients in structuring an investment portfolio suitable for their particular needs, emphasizing income and risk management. A unique opportunity to mentor under a former Chairman of the Chicago Board of Trade enticed Bob into the commodities arena. Bob eventually managed the office of his mentor, before the firm was purchased and relocated to Chicago. Bob follows most futures markets using primarily Technical Analysis, and takes advantage of the strong correlation between the U.S. Dollar Index and those futures purchased in Dollars. You can request a FREE 2-week trial subscription of PROBABLE DAILY & WEEKLY TRADING RANGES by calling Bob at (561) 674-0014 or email at bkozak@C3ICapital.com Bob has been a frequent contributor to many national publications, including Futures Magazine, Dow Jones Newswire, and Bloomberg FX -TV.
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