September Euro currency futures (E6U25) present a selling opportunity on more price weakness.
See on the daily bar chart for the September Euro currency futures that prices are starting to roll over after a price uptrend was recently negated. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bearish posture as the blue MACD line is below the red trigger line and both lines are trending down.
Fundamentally, it’s telling that today, the first trading day after a trade deal between the European Union and the United States was reached, that the U.S. Dollar Index ($DXY) is solidly up and the Euro currency is solidly down. The marketplace believes the U.S. came out on top of the deal. It’s been my bias for a few weeks that the U.S. Dollar Index has put in a major bottom.
A move in the September Euro currency futures below chart support at 1.1675 would give the bears more power and it would also become a selling opportunity. The downside price objective would be 1.1250, or below. Technical resistance, for which to place a protective buy stop just above, is located at 1.1900.
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 out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.Trading commodity futures and options 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 those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
