Fri, Oct 23 2009, 08:24 GMT
by Nicole Elliott
Comment: Front month Eurodollar futures are holding up well though red ones edged a little lower because they have more room to manoeuvre. Hints of year-end worries have crept into market psychology, but so far have had little effect on prices. Technically this contract is holding in a ‘triangle’ at the apex of a very large ‘wedge’, giving mixed signals. It is no longer overbought and momentum is still nil. We shall continue to allow for a small initial dip to trendline support and possibly the Ichimoku ‘cloud’, though note that this might be achieved by creeping sideways across the page.
Strategy: Possibly attempt the tiniest of shorts at 99.410; stop above 99.500. Target 99.375, maybe 99.300., then watch for signs of basing before going long again.
Published on Fri, Oct 23 2009, 08:26 GMT
Mizuho Corporate Bank
| 1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8210
http://www.mizuho-cb.co.uk | Nicole.Elliot@mhcb.co.uk
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