BrokersEDGE Futures commodity market recap 2-5-19

Euro Dollar
Bias: Bullish/Neutral
Resistance: 1.1485-1.15015**, 1.15575-1.1563*** (bulls in control above here), 1.16325**, 1.1754***
Support: 1.14375-1.1450**, 1.13875-1.1389**, 1.13375-1.1353***, 1.1283-1.1311*, 1.1245***

Bias: Bullish/Neutral
Resistance: .9162** (neutralize weakness above here), .9255*** (bulls in control above here), .9294**, .9326-.9333**, .9400-.9410***
Pivot: .91295 (bears have edge below here)
Support: .90785-9091**, .9037**, .8998.9002***

Aussie Dollar
Bias: Neutral/Bullish
Resistance: .7254-.7278*** (close above for breakout), .7300*, .7407****
Support: .7199*, .7147-.7162** (budding failure below here), .7082*** (failure)

Canadian Dollar
Bias: Neutral/Bullish
Resistance: .7649***, .7716-.7725**, .7835
Pivot: 7593-.7615 (immediate-term Bullish above here)
Support: .7572*, .7552**, .74875-.7497*** (failure below here)

LEJ8: .75 at 127.75, trading in a range of .95
LEM: .475 at 117.475, trading in a range of .575
GFH9: -.075 at 144.15, trading in a range of 1.55
GFJ9: -.325 at 145.50, trading in a range of 1.525

Cattle Commentary: Cattle futures were mixed today with feeders under pressure and fats holding a bid. Both of their intraday ranges narrowed as we settle into more of a range and market participants look for new news on the wire. Tomorrow’s Fed Cattle Exchange is back to the small number of offerings tomorrow, just 294 head listed. The next Cattle on Feed report will be released February 22nd and covering the month of January (due to the government shutdown).

PM Boxed Beef / Choice / Select
Current Cutout Values: / 217.02 / 213.10
Change from prior day: / (.63) / (.31)
Choice/Select spread: / 3.92

Tech Talk
Live Cattle (April)
April live cattle pressed up against our first resistance pocket into the close, we defined that in yesterday’s report as 127.80-128.20. If the bulls can chew through this pocket with conviction, their next target would be 129.475-130.00. On the flip side, a failure to breakout would likely encourage long liquidation from the back half of last week’s trade. First meaningful support comes in from 125.30-125.75. This pocket represents last week’s lows and the 50-day moving average.
Resistance: 127.80-128.20**, 129.475-130.00**
Support: 125.00-125.475**, 123.70-124.60****

Feeder Cattle (March)
Feeder cattle softened up on the open but managed to stabilize and recover some of those loses into the close. All in all, it did little to change the technical landscape as we continue to trade in a range. We have defined that range as 142ish-145ish. This is a very tradable market, but you need to temper the expectations of a bigger directional move.
Resistance: 145.275-145.75***, 146.425-147.20****
Support: 141.95-142.55**, 140.25-140.80****

Lean Hogs (April)
The market giveth, and the market taketh. Yesterday’s limit up move was cut in half today, a huge letdown for bulls looking for follow through momentum. In yesterday’s Livestock Roundup, we mentioned that the bulls “need to see a continuation and a close back above 63.425-63.80 to encourage a sustained move higher.”. We are still in the camp that the market can do this, but it isn’t going to be easy and it may get worse before it gets better.
Resistance: 63.425-63.80****, 65.65-66.20***
Support: 59.65-60.15***, 57.80****

If you have any questions about the commodity futures and options markets, trading or opening an account please let us know!

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Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. DAW Trading (“DAW”) uses various outside sources for research material regarding futures and options on futures trading therefore the views and opinions expressed in this letter may not necessarily reflect the view of DAW or its staff. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to DAW.

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