June Euro currency (E6H26) futures offer a selling opportunity for further price weakness.
On the daily bar chart for the June Euro currency futures, see that there is a bearish price line and prices have hit more than three-month lows today. Also notice at the bottom of the chart that the Moving Average Divergence (MACD) indicator is in bearish mode as the blue MACD line is below the red trigger line and both lines are trending down. Bears have near-term technical advantage.
Fundamentally, the current geopolitical crisis has prompted a “flight to quality” in the US dollar ($DXY), which is a bearish euro-currency. Also, a war in the Middle East has the potential to damage the EU economy – especially the energy sector – more than it will damage the US economy.
A move in June Euro currency futures below chart support at this week’s low of 1.1640 would become a selling opportunity. A lower price target would be 1.1300, or below. Technical resistance, for a protective buy stop to be placed, is located at $1.1800.
Important note: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point you to potential business opportunities. However, it is up to you to: (1) decide when and if you want to start any trades and (2) determine the size of any trades you can start. Any trades I discuss are speculative in nature.
Here’s what the Commodity Futures Trading Commission (CFTC) has to say about futures trading (and I agree 100%):
Commodity futures and options trading is not for everyone. It is a volatile, complex and risky business. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into these contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents that your broker provides you.
As of the date of publication, Jim Wyckoff had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com
