Commodity Prices Will Continue to Ratchet Up
- Posted by Greg Harmon
- on July 18th, 2012
A month ago we looked at the Australian Dollar ($FXA) and the Canadian Dollar ($FCA) and saw signs of a pending rise in commodity prices in Signs of A Coming Turn Higher in Commodities. Down the road four weeks and after a CPI report that came in at zero Tuesday, has anything changed? No, not really, take a look.
Currency Shares Australian Dollar Trust, $FXA
Currency Shares Australian Dollar Trust, $FXA, broke resistance higher initially June 15th and has moved higher. Now it is breaking resistance higher again at 103 in a Cup and Handle pattern that targets 109.50. There is resistance along the way at 104.20 and 105.20 along the way followed by 107.22, but the Aussie Dollar points to still higher commodity prices.
Currency Shares Canadian Dollar Trust, $FXC
Currency Shares Canadian Dollar Trust, $FXC, has also moved higher but in a bit of a stutter step higher until July. Now it is also testing resistance at the Independence Day double top with some support to move higher from the Relative Strength Index (RSI) and Moving Average Convergence Divergence indicator (MACD). Above 98.25 this has a target of 99.25. Continue to watch these two Commodity Currencies for insight into what will happen to Commodity prices going forward. Forget about the CPI, it is garbage for this case.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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