Currency Funds
The large majority of the ETFs are Bull Funds and with few that are leveraged. DRR, EUO, UDN and YCS are Bearish ETFs and are double leveraged. The double leveraged Bull ETFs include ULE, UUP, and YCL. Below, under “Comments, Analysis, and Recommendations”, I will write my comments for the Currency Funds giving you my chart analysis. I want to give you good evidence as to why I believe the certain currencies are heading higher or lower. I base my analysis on several technical tools. I use Exponential Moving Averages, Elliott Wave Analysis, Fibonacci, Japanese Candlestick patterns, trend lines, and support/resistance lines. My goal is to provide you with the information needed so you can make the best trading decisions with the Currency Funds. My goal is also to help you to become profitable and most of all to help keep you from loosing a ton of money. I will provide you the potential price targets to take profits and stop loss levels to help preserve your trading capital in these Currency Funds. Click on the desired Currency Funds link below to view the chart. BNZ - WisdomTree Dreyfus New Zealand Dollar BZF - WisdomTree Dreyfus Brazilian Real DRR - Market Vectors-Double Short Euro EUO - ProShares UltraShort Euro FXA - Rydex CurrencyShares Australia FXB - Rydex CurrencyShares British Pound FXE - Rydex CurrencyShares Euro Currency FXF - Rydex CurrencyShares Swiss Franc FXM - Rydex CurrencyShares Mexican Peso FXS - Rydex CurrencyShares Swedish Krona FXY - Rydex CurrencyShares Japanese SZR - WisdomTree Dreyfus South Africa UDN - PowerShares DB USD Index Bearish ULE - ProShares Ultra Euro UUP PowerShares DB USD Index Bullish YCL - ProShares Ultra Yen YCS - ProShares UltraShort Yen Comments, Analysis, and Recommendations2/15/10The U.S. Dollar continues to strengthen against the other currencies. The only other currency that has shown any strength at all is the Japanese Yen. However, the Yen is below its previous high. It needs to break above the 12/9/09 high to break the lower high and low pattern. A break of the 12/9/09 high will signal the potential of new highs. It would be a good time to go long the Yen. All the ETFs that are above their 233 EMAs include the ETFs BZF, FXA, FXY, SZR, and YCL. They are above the 233 EMA, but are below their previous high as mentioned above concerning the Yen. The currencies of Australia, Brazil, and South Africa have faired much better than the Euro. The Euro has been decimated. The wave pattern for the Euro does not bode well for the future price either. The decline is impulsive, indicating the trend is down and will continue to decline to lower lows from here. I do not expect FXE to take a rest until it reaches the 132 to 130 level. The 55 EMA has now crossed below the 233 EMA, indicating the change in trend is long term. The 233 EMA has actually started turning downward. Be a smart trader. Craig Wells Do not forget to subscribe to the RSS Feed for my blog. My blog will keep you current on my updates to my analysis and recommendations. I will post to this blog before I update the Chart and Analysis section. You can also subscribe to my monthly newsletter, ETF Technical Trader. I will e-mail the newsletter at the first of each month. This will keep you informed as a reminder of the analysis and recommendations since the last newsletter. You will be able to reflect on the progress of my service and receive insight into the probabilities of direction in the next couple of weeks. By the way, it cost you nothing! Just fill out the form below and subscribe. ETF Technical Trader
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