3 m Eurodollar contract: weak

Catégorie [ Contat 3 m Eurodollar ]

Long term:  lower?

On a monthly basis (September 2010 contract) a bullish parallel pattern is in progress.

Idea: as long as PM proves to be a support, a decline is only a technical correction  

Bet: none

R= 99.55 (Historical high); S = PM (99.014), MM (98.45)

 

Medium term: towards LW

On a weekly basis, Bollinger bands spread is minimal. For our MACD, a bearish no-crossover is in progress. LW is our first target. As long as the pattern for our 7 / 23 weeks moving averages is not a bearish A type crossover, a decline is only a technical move.

Idea: weak as long as MW proves to be a resistance

Bet: below LW, the decline could be a bear trend.

R = MW (99.364);         S = LW (99.17)

 

Short term: bearish

On a daily basis, a bear trend is in progress. Below 99.15 (May low), the move should extend towards PM.

Idea: below 99.15, stock indexes will move lower.

Bet: weak as long as MD proves to be a resistance.

R = MD (99.346);         S = 99.15

 

Conclusion: first warning for financial system below 99.15, crisis below PM (99.014).