Yesterday the March contract started the day by jumping nearly 200 points in the first hour. Then it retrenched a little bit, only to jump over 300 points between 8:30 and 9:00. It was not until ten minutes before the close that March decided to drop 200 points. March closed at 1.2440 up 220 points up 620 points for the weeks and 910 points up from the low.
Friday’s move crossed the 40 and 60 moving averages which encourages the bulls.
I have attached two technical articles. Although the long term trend is still down, fundamental issues such as the strengthening of the Real and the potential for big crops in Brazil and Vietnam next year could have bullish and bearish influences respectively. Technically, the short term trend is up.
The future appears to be a bit bumpy!!