Inter-market Technical Analysis using algorithmic pattern detection
TUESDAY DECEMBER 8, 2009 06:44 ET
The hourly chart for UUP, the ETF which provides a bullish view on the US dollar against a basket of other currencies, is showing a large degree of inter-day volatility but has still failed to convincingly penetrate the very pronounced trend-line through recent highs.
The confusion in the FX arena, which was highlighted by the incongruity between the better than expected NFP data on Friday and yet somber comments by Bernanke yesterday, is being felt across most asset classes and, in particular, yesterday’s trading in US equities was one of the most lackluster sessions for some time.
USD/JPY is trading back below the 50 day EMA and approaching the 88 level as this is being written and this is not what the BOJ wants to see nor what has, in all likelihood, been priced into the recent advances in the Nikkei 225.
Sterling is at a critical juncture against the US dollar and looks ready to test $1.6270 which was touched in the aftermath of the Dubai news. Meanwhile the EUR/GBP cross rate is also at a key level where if the trendline drawn can be broken, this pair could be headed towards another shot at parity in coming weeks.
AUD/JPY is revealing violations of two nested rising wedge patterns.
TRADE OPPORTUNITIES/SETUPS FOR TUESDAY DECEMBER 8, 2009
The patterns identified below should be considered as indicative of eventual price direction in forthcoming trading sessions.
None of these setups should be seen as specifically opportune for the current trading session.
For a more comprehensive listing of price formations detected by our pattern recognition algorithms please visit TradeWithForm
TRA Terra Industries Inc.
As discussed here last week Terra Industries (TRA) was revealing a bull flag, and could have delivered a 5% plus return yesterday despite the weak close.
GENZ Genzyme Corporation
Also noted here last week Genzyme (GENZ) is succumbing to renewed selling as the pullback pattern appears to have completed.