In this issue of TraderSavvy:
- Get Your Money Management Guide from RJOFutures.
- Sign-up for Free Webinars!
- Gain a Better Understanding of Options with Our Free Options Strategy Guide
- RJOFutures market analysis. Sign-up for our newsletter!
- Futures Trading Made Easy. 100% Browser-Based!


View additional market commentary on InsideFutures.com


TraderSavvy Newsletter for Futures Traders
In This Issue:

Adam Szatkowski of RJOFutures discusses the Euro Dollar and the downtrend of the USD index.

July 30th, 2007 TraderSavvy.com   |   Read Past Issues
Sponsored By:
Sponsored by XpressTrade

Futures Trading Made Easy.
100% Browser-Based!









Get Your Money Management Guide from RJOFutures.


Sign-up for Free Webinars!


Gain a Better Understanding of Options with Our Free Options Strategy Guide


RJOFutures market analysis. Sign-up for our newsletter!

 

 

 

 

 

 

 

 

 

 

Advertise with us

Published By Barchart.com

Euro Dollar

This article will focus on the U.S. Dollar’s (USD) continued weakness against all major currencies. The downtrend of the USD index continues to keep its momentum, helping the euro and British pound (GBP) to continue to go higher. We are watching the euro closely here to see if a top is forming at the 1.37 to 1.38 level, which has been tested before and hasn’t held. At the time of publication, the market could trade in this range as the pound trends higher. So, we are looking for the reversal into the 1.35 level. Fundamentally, there has been much talk coming from France about looking for the European Central Bank to slow the inflation of the European currency. The worries of the European Union are that the continuing strength will put a strain on the exports and that the healthy tourism industry of Europe is growing. These concerns might take some time to turn the market around, but look for a possible sideways market to hint at these concerns.

(continued below...)


Special Message From Our Author:

A successful trading plan includes a sound money management plan. The 20-page Money Management Guide from RJOFutures presents a valuable collection of articles on money management as it relates to constructing a successful trading plan. You can gain a better understanding of risk control, position size, stop placement, and more. Register now.


(continued from above...)

For the near future, all eyes seem to be focused on the United States sub-prime mortgage problems. With our housing market still on a decline in many major areas, speculators are still building net short positions against the dollar. Also, recent unemployment numbers out of Germany are showing a positive turn. The rate is expected to decline for the next few months at least. The trend continues to be up in the euro, but seems to be stalling at the levels that are being written about at this moment. To belong, the euro now might be too late—without seeing another leg up. To try and capture the slower euro—without the risk of being outright short the USD—the EUR/GBP market does give you an opportunity to belong the pound. A short in this market will have you owning the GBP using the euro. This will give you an opportunity to try to capture the strength of the pound versus the euro. Looking at this market now, it is trading into the 0.6700 support level, a breakdown from there could show continuation as the pound heads through the 2.06 level. This market does not have the large daily range of some of the majors against the USD, because the euro and pound tend to trade in the same direction. This could be a longer term position if the market follows through. So until the pound slows or turns, this can give FX traders a new opportunity.





More Special Offers for TraderSavvy Readers

Sign-up for Free Webinars!

Gain a Better Understanding of Options with Our Free Options Strategy Guide

RJOFutures market analysis. Sign-up for our newsletter!

Advertise with us


About Today's Author:

Adam Szatkowski is a senior broker at RJOFutures. He considers basic money management to be one of his main objectives, and is always looking at the downside of positions to preserve capital if the market is not doing what was expected. And he believes in following the trend and momentum, as well as in using stop orders to lock in profits behind winning positions.