U.S. Dollar Solidly Lower Early

Tags: Market News
27 Aug 12:47pm
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CURRENCIES

The September U.S. dollar index is trading solidly lower in early trading today on profit-taking pressure. Slow stochastics for the dollar index are bearish early today. The dollar index finds shorter-term technical resistance at 77.00 and then at the overnight high of 77.38. Shorter-term support is seen at this week's low of 76.67 and then at 76.50. Today's key near-term Fibonacci support/resistance level: 77.12. Wyckoff's Intra Day Market Rating: 4.5

The September Euro is higher in early electronic trading, on short covering. Euro finds sell stop orders are likely located just below technical support at 1.4700 and then just below support at the overnight low of 1.4618. Shorter-term technical resistance for the Euro is seen at the overnight high of 1.4760 and then at 1.4800. Buy stops likely reside just above those levels. Slow stochastics for the Euro are neutral early today. Today's key near-term Fibonacci support/resistance level: 1.4682. Wyckoff's Intra Day Market Rating: 5.5

GOLD

Gold is higher in early dealings today. For December gold, shorter-term technical resistance is seen at the overnight high of $840.50 and then at last week's high of $845.00. Buy stops likely reside just above those levels. Sell stops likely reside just below support at $830.00 and then at the overnight low of $826.00. Today's key near-term Fibonacci support/resistance level: $819.00. Wyckoff's Intra-Day Market Rating: 6.0

CRUDE OIL

Crude oil prices are higher early today, as Hurricane Gustav looms in the Atlantic. The downside in crude oil should be limited all week, due to the threat of Gustav to oil installations in the Gulf of Mexico. In October crude, look for buy stops to reside just above resistance at $118.00 and then just above resistance at $119.00. Look for sell stops just below technical support at $116.00 and then more sell stops just below support at the overnight low of $115.64. Today's key near-term Fibonacci support/resistance level: $115.52. Wyckoff's Intra-Day Market Rating: 6.0

GRAINS

Prices were higher in overnight trading, on short covering and fresh speculative buying amid bullish "outside markets" overnight--a solidly lower U.S. dollar and higher crude oil prices. Trading has turned choppy in the grains. Hurricane Gustav will be a major factor in the grains, too, due to it's effect on the major outside market crude oil.

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About

JimWyckoff

Jim Wyckoff has been involved with the stock, financial and futures markets for more than 20 years. He was born and raised in Iowa, where he still resides. Wyckoff became a financial journalist with Futures World News for many years, cutting his teeth as a reporter on the futures trading floors in Chicago and New York, where he covered every futures market traded in the United States at one time or another. Not long after he began his career in financial journalism, he began studying technical analysis. By studying chart patterns and other technical indicators, he realized this approach to analyzing and trading markets could level the playing field between “professional insiders” in the markets and individual traders. His extensive studies of technical analysis and knowledge of markets led to several positions, including chief technical analyst at several well-known companies. He says his mission is not just to generate profits for traders but to also provide them with educational and insightful information because, in the fascinating business of trading, one never stops learning. Wyckoff received a Bachelor of Science degree at Iowa State University, graduating in 1984 with a major in journalism and a minor in economics. He and his wife have two children, a son in high school and a daughter in college. When he’s not analyzing markets and educating traders, Wyckoff says he loves adventures, from driving a Jeep across the highest mountain pass in the continental United States to extreme winter camping in the Boundary Waters to hiking in the jungles of South America.