Daily Form June 14, 2010

Inter-market Technical Analysis using algorithmic pattern detection

MONDAY JUNE 14, 2010       07:24 ET

Today’s commentary will be brief because the objectives on three key charts which were discussed here last week have all been met and accordingly my sense is that the market has reached a critical decision point.
The S&P e-Mini futures is exactly at the 1093 level which represents an area of possible resistance and from which the moves over the next couple of sessions will clarify whether the market is ready to cast aside the lingering doubts about the anemic recovery and re-build back towards 1140 or whether the recent rally runs out of steam.
Rather than speculate I shall be watching from the sidelines until the direction of travel becomes clearer.

EUR/USD finally broke through the $1.22 level in Asian trading on Monday as it was unable to do so in Friday’s North American session.
The current level in the neighborhood of $1.2240 strikes me as one where new sellers may emerge notwithstanding the fact that on the 240 minute chart the euro has managed to peek above the 100 period moving average as highlighted on the chart.
Once again this is a critical area for the currency pair and the risk/reward calculation at this stage is uncertain enough to confine my trading activities to short term scalping with a tendency toward shorting the euro on any spikes upwards.

The third chart is for AUD/USD which also has fulfilled an intermediate term objective and where some consolidation or pullback now seems imminent.

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