February 2010

Daily Forex Market Commentary 2-2-10

Forex Trading Commentary & Trade Setups by Nial Fuller

Daily Forex Market Commentary:

On Wall Street today stocks rallied for the 2nd day in a row as upbeat earnings reports and a bigger than expected increase in U.S. pending home sales gave investors reason to buy.

The good GDP numbers last week combined with rising ISM numbers yesterday and today’s positive pending home sales is providing support that the strength we saw in the fourth quarter could be sustainable throughout the first quarter of this year and beyond.

Currencies:

The U.S. dollar declined against most of the major currencies today accept the Australian dollar. The reserve bank of Australia moved to keep their cash rate at 3.75% last night after the market was expecting a raise up to 4.00%. This caused a substantial intra-day sell of, however the pair closed about 83 pips off its lows.

Pair in focus: USD/JPY

Today we are looking at a daily chart of the USD/JPY currency pair. We can see an inside bar setup has formed at an area of confluence. This market is moving lower, as such we would sell a break of the low of today’s inside bar and look for it to move down to the 89.20 level before pausing.

Sometimes inside bars on the daily chart will result in a fakey setup, which I explain in detail in my forex currency course. However, inside bar setups taken with trend-confluence are usually a very high probability price action setup.

For a more in-depth analysis of the major currency pairs and Price Action Analysis please check out my Forex Trading Course.

Daily Forex Market Commentary 2-1-10

Forex Trading Commentary & Trade Setups by Nial Fuller

Daily Forex Market Commentary:

On Wall Street today the Dow closed up 118.20 as investors regained optimism after a better than expected ISM report out of the U.S. showed the manufacturing sector is picking up.

Foreign stock markets were also bullish as upbeat economic reports out of the euro-zone and China also contributed to the wide-spread positivity amongst investors.

Currencies:

The U.S. dollar declined today against most of the major currency pairs. The British Pound lost a small amount of ground to the green back however, along with the Japanese Yen.

Gold and Oil which generally have a strong impact on the currency markets were markedly bullish today with Gold rising 1.9% and Crude Oil futures up 2%.

Pair in focus: GBP/USD

We can see that our target of 1.5910 got hit today as GBPUSD sold off into the next relevant support level, hitting a low of 1.5849 today before reversing and forming a bullish pin bar. By looking back at the last 3 daily commentaries it is very apparent that the fakey setup is very effective on the daily time frame.

Traders who are looking for further training in the fakey setup as well as other specific price action setups can check out my forex training videos or my forex trading course which goes into the greatest detail and includes a lifetime subscription to material updates and the member’s trading forum where we discuss price action setups in all the major currency pairs everyday.