Wild Wednesday

Wednesday certainly was a volatile day in the currency markets with the US Dollar making another high @ 8174 early before the US trading session only to reverse later in the day. The pullback in the Dollar saw the Euro, Yen, Aussie and Canadian Dollars come roaring back from their lows. Finding a valid reason for the whipsaw today, it really does not matter. What matters is what tomorrow will bring. This evening,

we will see if the Aussie can follow through with its strength from earlier as the Australian unemployment number is set to be released. Early Thursday morning we will have interest rates decisions, really just statements, from both the Bank of England and the ECB. Where do we go from here? It's all in this chart of the US Dollar index.

After making a high of 8174, the dollar fell back below the 8150 level and notice how it closed right at that level. As you can see, the dollar is sitting at that 8150 level which is resting right on the daily trend line, interesting to say the least. Sorry for not having much to say today but with the Central Banks meeting tomorrow, I believe the chart above shows where we stand. Quite simple, if the major currencies fall back tomorrow against the almighty dollar, then the dollar uptrend most likely will continue for the time being. If the up trend does break, look for the gains in GOLD to continue.

As far as Gold is concerned, pretty good day with it pushing above 1310 and holding those gains throughout the day. I would like to see it push through the 1330 level next, to really get speculators interested on the long side. Just keep in mind, Gold is in a range right now between 1280 and 1335, until one of these levels gives out, there really is nothing to get excited about. For now, Gold should be supported at 1295.

Lastly, the US equity markets look terrible and could not muster much a bounce today with the Dow closing up 14 points and the S&P closing flat @ the 1920 level. Even crude oil was rallying earlier above $98 only to fall all the way back and close below $97, not a good sign if you are looking for the markets to rally back to the upside. Again I reiterate waht I have been saying throughout the fall in the price of oil, DEMAND IS WEAK and that is not a good sign for the global economy. Let's see what Thursday brings, be safe out there!

Thanks for reading
TraderMartin

A wild day for the marketplace but a beautiful day for the South Fl beach!