JimWyckoff's Commentaries

Aug 24 2006

U.S. Dollar Weaker in Early Trading

CURRENCIES

The September U.S. dollar index is weaker in early morning dealings. Slow stochastics are bullish for today. The dollar index finds shorter-term technical resistance at 85.00 and then at the overnight high of 85.30. Shorter-term support is seen at Wednesday's low of 84.63 and then at this week's low of 84.27. Wyckoff's Intra Day Market Rating: 3.5

The September Euro is higher in early trading. The Euro today finds sell stop orders are likely located just below shorter-term technical support at 1.2800 and then more sell stops just below support at the overnight low of 1.2767. Shorter-term technical resistance for the Euro is seen at Wednesday's high of 1.2875 and then at 1.2900. Buy stops likely reside just above those levels. Slow stochastics for the Euro are bearish for today. Wyckoff's Intra Day Market Rating: 6.0

METALS

Gold is trading firmer in early morning dealings. In December gold, shorter-term technical support is seen at the overnight low of $629.30 and then at $625.00. Sell stops likely reside just below those levels. Buy stops likely reside just above resistance at Wednesday's high of $639.80 and then more buy stops just above resistance at $643.00. Wyckoff's Intra-Day Market Rating: 6.0

ENERGIES

Crude oil prices are trading steady in early electronic dealings. In October crude, look for buy stops to reside just above resistance at the overnight high of $71.98 and then just above resistance at $72.50. Look for sell stops just below technical support at the overnight low of $71.37, and then more sell stops just below support at $71.00. Wyckoff's Intra-Day Market Rating: 4.0

GRAINS

Prices were higher in overnight electronic trading, on follow-through short-covering buying from gains Wednesday. Traders are awaiting this morning's USDA weekly export sales report. Bears still have the near-term technical advantage in the grains. I don't look for strong upside potential heading into corn and soybean harvest, when seasonals are fully bearish. I look for more choppy and lackluster trading in the near term. The John Deere-Pro Farmer Midwest Crop Tour has held no real surprises this week.



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