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Daily Forex Market Commentary
The U.S. dollar was stronger against the euro and swiss franc today but lost slight ground to the British pound, Australian dollar, and Canadian dollar. The greenback also gained modestly on the yen well remaining relatively unchanged against the kiwi.
Looking ahead, the possibility of the U.S. dollar and Japanese yen increasing in value over the next couple days seems likely given the price action setups that formed today, however momentum has been against the safe-haven currencies recently.
Stocks:
On Wall Street today stocks were mostly higher in what was a quiet trading session. Apple Inc and Verizon Communications Inc climbed higher and economic data showed stabilization in the economy which worked to offset profit-taking in the financial sector.
The Dow was up 11.03 points, or 0.10 percent, the S&P 500 was up 0.35 point, or 0.03 percent, and the Nasdaq was up 5.97 points or, 025 percent.
Trading volume has been light this week in anticipation of the Passover and Easter holidays.
Currency pair in focus: GBP/JPY – Speculative intra-day setup
The GBJPY has formed a bearish pin bar setup on the 4 hour chart today. The pin bar is rejecting resistance near 140.50, however, given the fact that the pair broke past recent highs near 139.30 over night, the overall 4 hour chart momentum is still bullish.
We can see in the chart below there are two obvious levels of support close by, one at 139.00 and the other near 138.00. Traders interested in taking this short setup should keep in mind the above comments and overall speculative nature of the trade.
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading course.
Daily Forex Market Commentary
The U.S. dollar slipped today as the euro strengthened on the back of another successful bond sale by debt-strapped Greece.
The greenback closed lower against the other major currencies today as well, on the back of rising equities and commodity prices.
Looking ahead, the dollar strength that we saw at the end of last week took a rest today. From current levels the major currency pairs seem to not be displaying any obvious price action indications of where they are headed next, as a result we suggest waiting for further price action confirmation before committing to any positions.
Stocks:
On Wall Street today stocks climbed higher as mining and energy companies strengthened on dollar weakness and investors bought recent well performing stocks as the 1st a quarter comes to an end.
The decline in the U.S. dollar lifted commodity prices, major manufactures and industrials also performed well.
The Dow closed up 45.50 points, or 0.42 percent, the S&P 500 closed up 6.63 points, or 0.57 percent, and the Nasdaq closed up 9.23 points, or 0.39 percent.
Currency pair in focus: NZD/USD – Recap, USD/JPY –Inside bar setup
The NZD/USD inside – pin bar setup from our last commentary never came off to the downside. The trade parameters were to sell a break of the low, as such; the trade never got entered because the low didn’t break. At this point the trade is nullified because the high of the inside bar has been violated.
The USD/JPY has formed two consecutive inside bars and looks to be setting up for an explosive move. The inside bar setup could breakout either direction, the momentum is currently bullish, so we would look to be buyers of a move lower near 91.20 pending a bullish price action setup. Resistance comes in near 93.70.
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading course.
Daily Forex Market Commentary
The U.S. dollar traded lower today against the euro today as traders became more willing to hold the 16-nation currency following the agreement to help bail out Greece.
The greenback was also modestly lower against the British pound, Swiss franc, and Japanese yen, but traded higher against the Australian dollar, Canadian dollar, and remained essentially unchanged versus the kiwi.
Looking ahead, next week will likely be dominated by continued U.S. dollar strength, especially if equity markets stall out around current levels. A move up to 1.3430-1.3450 would likely be a good area to short the EURUSD from.
Stocks:
On Wall Street today stocks gave up early gains as investors took profits off the table following a consistent rally which has carried the market to 18-month highs as of this week’s close.
Political turmoil across the globe elicited some selling as a result of a South Korean naval ship sinking following an explosion close to a long-disputed maritime border with North Korea. However, news out of Europe was encouraging for investors as fellow Euro-zone countries unveiled a plan to bail out debt-laden Greece along with aid from the IMF if necessary.
The Dow closed up 9.45 points, to end the week at 10,858, however it hit a high of 10,909.38 earlier in the session. The S&P 500 was up 1 point to end the week at 1,167, and the Nasdaq closed down 2.28 points to end the week at 2,395.
Currency pair in focus: NZD/USD
Today’s currency pair in focus is the kiwi/dollar. You can see in the 4 hour chart below there is a head and shoulders top pattern that has developed with bearish pin bars on each shoulder.
The daily chart has formed an inside – pin bar combo setup. This chart is not showing much in the way of support until around 0.6850.
Traders could look to sell a break of the low from today’s inside bar with stops just above 0.7100 and targets near 0.6850.
Click here for more information on pin bars and inside bars: Forex strategies
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading course.
Daily Forex Market Commentary
The U.S. dollar traded higher today against most of the major currency pairs. The euro fell to a 10 month low against the greenback after European Central Bank President Jean-Claude Trichet stated if the IMF were to take responsibility for bailing out Greece it would send a negative message.
The greenback appears to be strengthening as risk aversion is returning to the markets due to unease over global debt and the possibility of rising interest rates.
Looking ahead, the U.S. Dollar will likely continue to gain strength against the majors into the end of this trading week. Technical’s and fundamental’s are beginning to agree on this point
Stocks:
On Wall Street today U.S. stocks ended the session flat, dropping substantially lower from intra-session highs after a weak U.S. bond auction and increasing global debt concerns continued to weigh on investor outlook.
The Dow closed up 5.06 points, to end at 10,841.21 after toying with 11,000, the S&P 500 closed down 1.99 points, to end the session at 1,165.73, and the Nasdaq closed 1.35 points, to end at 2,397.41
Currency pair in focus: GBP/JPY
Today we are updating the commentary from 3-22-10 in which we called a bullish pin bar long that had the possibility to run up into 138.20. To see this posting please click here, GBPJPY pin bar setup. The pair hit a high of 138.10 today and subsequently backed off showing rejection of this level.
The original setup from Monday was a prime candidate for the 50% entry technique which I teach in detail in my forex trading course . This entry would have provided a great risk to reward ratio, which you can also learn more about inside the trading course.
Click here for some exceptional price action trading videos, demonstrating the pin bar setup and others in detail: Forex Trading Videos
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex educational course.
Daily Forex Market Commentary:
The U.S. dollar soared today as safe-haven assets gained strength on the back of renewed concerns over the fiscal situation in the euro zone. The greenback climbed 1.28 percent, its highest level since May of last year against a basket of other major currencies.
Gold and oil also closed lower on the day. The U.S. dollar gained on all the major currency pairs.
Looking ahead, we see U.S. dollar strength being the theme for the rest of the trading week. Traders can look to get long on the greenback on retracements against it. Keep checking the daily commentary for any new price action setups.
Stocks:
On Wall Street today stocks closed lower as investor concerns mounted over the spiraling debt burden in some European countries.
The downgrade of Portugal’s credit ratings by Fitch set a negative tone in the European markets, this added to the existing negative tone over debt issues in Greece. Markets are on edge regarding how Europe will deal with its issues.
The Dow closed down 47.69 points, or 0.44 percent, the S&P 500 was down 6.23 points, or 0.53 percent, and the Nasdaq closed 15.01 points, or 0.62 percent.
Currency pair in focus: AUD/JPY and USD/JPY
The bullish pin bar setup that formed in the AUDJPY on Monday is coming off nicely to the upside. We can see the next resistance area begins around 85.30, traders long this pin bar setup could look to take profits near this level.
To learn more about the price action setups we use please click here: price action forex course
The USDJPY rallied aggressively today as the inside bar setup from yesterday broke out. Once resistance near 91.00 was cleared it was off to the races. We can see the next logical target are lies around 93.50-93.75
For some great videos of the inside bar setup and other price action techniques click here: Forex videos
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading course.
Daily Forex Market Commentary:
The U.S. dollar closed lower against most of the major currencies today as rising equities offset the greenback strength we saw on Friday.
Crude oil futures ended higher on the day as easing concerns over debt issues in Greece and renewed confidence on Wall Street put pressure on the U.S. dollar and worked to raise commodity prices.
Looking ahead, many of the major pairs have formed pin bars that are indicating the U.S. dollar may weaken over the near-term. See the chart analysis below for more details.
Stocks:
On Wall Street today stocks rose, continuing the strength seen last week. The passing of a bill reforming the healthcare system in the U.S. brought an end to much of the uncertainty regarding the issue for investors.
The Dow was up 43.91 points to close at 10,785.89, the S&P 500 was up 5.91 points to close at 1,165.81. The Nasdaq was up 20.99 points to close at 2,395.40. The Dow made a new 17-month high today and has closed higher 9 out of the last 10 trading sessions.
Currency pair in focus: GBP/JPY
Today we are looking at a daily chart of GBPJPY which has formed a bullish pin bar setup showing rejection of the horizontal support level near 134.50.
This market has the possibility of running up to near 138.20 before moving substantially lower.
For more information on great price action setups such as the pin bar reversal and others, click here: Forex Training
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading course.
Daily Forex Market Commentary:
The U.S. dollar traded higher against all the major currencies today as the renewed worries out of Greece and falling crude oil prices caused a steep gain in the greenback.
The euro fell to over a 2 week low against the U.S. dollar as investors are fearful that Germany, the European Union’s biggest economy, will delay efforts to help with Greece’s debt problems.
The British pound inside bar setup noted in yesterday’s “currency pair in focus” feature came off very nicely to the downside and goes to show the power of price action setups that form at critical horizontal resistance areas.
Looking ahead to the upcoming trading week, based off price action on the daily and weekly charts it is looking like a strong possibility we will see U.S. dollar strength return. Many of the major U.S. dollar pairs are showing price action setups forming off of significant inflection areas, this is indicative that the recent counter-trend rallies are coming to an end and we are likely to return to U.S. dollar strength and declines in equities and commodities.
Stocks:
On Wall Street today stocks could not sustain themselves at 17-month highs and closed lower. Renewed fears over debt troubles in Greece weighed on U.S. stocks and caused safe haven assets to gain.
The Dow lost 37.19 points or 0.35 percent, the S&P 500 dropped 5.93 points or 0.51 percent, and the Nasdaq lost 16.87 points or 0.71 percent.
Currency pair in focus: GBP/USD
We can see in the daily chart below of GBPUSD that the inside bar setup discussed in yesterday’s commentary has come off nicely to the downside.
Traders can either hold for a possible retest of 1.4800 or take profits if they have achieved a risk to reward of greater than 1:2.
For more information on great price action setups click here: forex training videos
For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading course.
Daily Forex Market Commentary:
The U.S. dollar traded higher against most of the major currencies today with the exception being the New Zealand dollar which it lost very modestly too.
The EURUSD failed in its attempt to sustain a run above 1.3800 yesterday, creating a false break of the level. The pair fell even lower today and closed well within its recent trading range of 1.3800-1.3450 to end the day at 1.3607.
With the recent bull run in equities and commodities being fueled by very light volume and economic data continuing to be lack luster it seems possible that risk aversion will return sooner rather than later. Should this scenario unfold it will mean the U.S. dollar and Japanese yen will likely strengthen and the higher yielding / higher risk currencies will weaken.
Stocks:
On Wall Street today the Dow ended higher for the 8th straight session as a rise in Boeing stock kept the index in bull mode. The S&P closed lower however, on the back of mixed economic data.
Analysts noted that the volume was exceptionally light today, one day before the expiration of quarterly futures and options.
The Dow Jones industrials average gained 45.50 points to end at 10,779.17, the S&P 500 lost 0.38 point to end at 1,165.83, and the Nasdaq gained 2.19 points to end at 2,391.28.
Currency pair in focus: GBP/USD
Today we are looking at the GBPUSD. We can see that yesterday this pair rejected the resistance area near 1.5350. Today an inside bar setup has formed which is telling us the market is stalling out and likely losing interest from the bulls. Inside bars are best as trend continuation signals, like the one we are seeing in today’s chart, check out some great videos of this and other setups here: forex trading videos.
Further more, a breakdown of the low of this inside bar would likely be a great entry into the overall down trend in GBPUSD. Traders could look to target the recent lows near 1.4800 while keeping stops just above 1.5380.
For a more in-depth analysis of the major FX pairs as well as price action education, please check out my forex educational trading course.
Update on EURUSD – Exit Signals at Resistance
More Forex Videos Here
Daily Forex Market Commentary:
The U.S. dollar traded lower against most of the major currencies today, with the exception being the euro, which it gained slightly against.
Rising crude oil prices helped the greenback to trade weaker today as U.S. crude inventories rose less than traders were expecting.
Based on the current price action on the major currency pair charts, current trends seem likely to continue into the end of this trading week. More specifically, it seems likely that stocks and commodities will continue to gain ground, and the U.S. dollar will continue to lose along with the Japanese yen.
Stocks:
On Wall Street today stocks rallied pushing the Dow to a fresh 17-month high on the back of data that showed February inflation was lower than expected, adding further support to the U.S. Federal Reserve’s renewed promise to maintain low interest rates.
The Dow gained 47.69 points, or 0.45 percent, to end at 10,733.67. The S&P 500 Index rose 6.75 points, or 0.58 percent, to 1,166.21.The Nasdaq advanced 11.08 points, or 0.47 percent, to 2,389.09.
Currency pair in focus: AUD/JPY
On Monday we posted up a chart of the AUDJPY that was showing a bearish fakey setup. To update this pair since then, the inside bar in the fakey setup never did break to the downside, so the setup never came off.
Instead, price has moved up and violated the high of the fakey tail, this indicates bullish momentum is building and a bigger move to the upside is possible from here.
We can see the next logical resistance comes in around 86.00, as such, this market looks like it will make a move to re-test this level over the coming trading days.
To learn more about price action setups like the fakey, and others, check out my price action trading course.
For a more in-depth analysis of the major FX pairs as well as daily market commentary, please check out my forex trading course.
Forex Trading Failure – Why Most Traders Fail – Most aspiring forex traders unfortunately do not ever achieve the success they desire when starting out. There are a number of psychological errors at work here that contribute to failure in the forex market. This article will focus on one of the primary psychological errors that hold traders back from achieving their desired results; over-complicating their forex analysis and strategy. It is extremely easy for forex traders to fall into the trap of thinking that their method needs to be technically difficult to understand or that they need to do extensive analysis in order to consistently profit.
Continue Reading Forex Trading Failure – Why Most Traders FailDaily Forex Market Commentary:
The U.S. dollar traded lower today after the U.S. Federal Reserve held benchmark interest rates near zero and reaffirmed its commitment to keeping them low for an extended period of time.
Concerns over the debt problems in Greece eased after Standard & Poor’s ended its review for a downgrade of Greece; they stated that the Greek government’s recent deficit reduction measures are supportive of the ratings.
The pound and euro both gained substantially on the greenback today, as did all the other major currencies. With the U.S. committed to maintaining low interest rates for the foreseeable future, it goes to reason that the U.S. dollar will continue to lose ground to the major FX pairs at least into the end of this trading week.
Stocks:
On Wall Street today stocks rose to new 17-month highs after the affirmation from the U.S. Federal Reserve bank that they are committed to keeping interest rates at historic lows in order to further facilitate the economic recovery.
The Dow gained 43.83 points, the S&P gained 8.95 points, and the Nasdaq gained 15.80 points.
Analysts are optimistic for the probability that the current rally in stocks will continue after the Fed rate statement today contained no negative language.
Currency pair in focus: EUR/USD
Today we are looking at the daily chart of EURUSD. We can see in this chart there have been multiple bullish pin bars with long lower tails which indicated rejection of the 1.3450 level.
The subsequent move up off this level was met by a slight pullback and then a push higher towards 1.3800. This has resulted in what is known as a “1-2-3” reversal, this is not a new concept and has been taught many times before. It is however, usually a good indicator that a change in direction is under way.
We can see in this chart that the EURUSD looks primed to break above 1.3800, once this happens higher prices into 1.4000 are very likely.
A look at the weekly price action will show you that bullish pin bars have been forming on this chart over the past few weeks as well, further adding to the validity of the current setup.
For a more in-depth analysis of the major FX pairs as well as daily market commentary, please check out my forex trading course.
Daily Forex Market Commentary:
The U.S. dollar traded higher today with Crude Oil closing lower by $1.44 a barrel, Gold was up modestly.
The greenback gained against all the major currencies except for losing by 2 pips to the New Zealand dollar. The U.S. Federal Reserve bank policy meeting tomorrow should help shed some light on which direction the major currencies are likely to take over the near term.
Looking ahead, most of the major FX pairs appear to be at rather significant inflection points. While the U.S. dollar has lost some ground over the recent weeks it is worth noting that the overall trend is still bullish for the greenback and that most of the bullish momentum that we have seen recently in equities and commodities has been on the back of rather light volume, generally an indication of an unsustainable rally.
Stocks:
On Wall Street today stocks staged a late day rally in response to a banking regulation proposal by U.S. senator Christopher Dodd that investors said did not offer any surprises for the financial sector.
World equities were down overall for the day though as investors became worried that China is likely to tighten credit in response to rising inflation, which could slow global growth.
Also of concern to investors today was the on-going Greece debt problem and specifically the lack of concrete progress on a financial aid package for the debt strapped country.
Currency pair in focus: AUD/JPY
We are looking at the daily chart of AUDJPY today. A fakey / pin bar combo setup has formed, this setup is generally very accurate and one of my favorite to trade.
We can see the resistance level this price action setup has occurred at. The pin bar tail is clearly showing rejection off the 83.50 level and the false break or fakey setup shows a failure to sustain price movement above 83.00.
This setup is a bearish price action setup and we can see the logical target area of 79.50 in the chart below. Check out my forex educational course for further instructions on how to use price action to profitably trade forex.
For a more in-depth analysis of the major FX pairs as well as daily forex market commentary on all the major pairs please check out my price action trading course.
Here is a Nice Video on Trading Reversals On The ‘Weekly Anchor’ Forex Charts, Using the higher time frames we can determine the bigger picture of the market, and then combine weekly chart data with daily chart data to form a bias on the price action for that currency pair. Remember to comment Please Guys Enjoy and good trading ..
More Forex Training Videos , Learn about Nial Fullers Pro Forex Training Course
Daily Forex Market Commentary:
The U.S. dollar traded mostly lower against the major currencies today, the greenback lost ground to the euro, pound, Swiss franc, and Canadian dollar, while remaining basically unchanged against the Australian, New Zealand dollar, and Japanese yen.
Looking ahead, this week was pretty quiet in the FX markets as we saw very little in the way of economic data over the first half of the week. Next week will provide a more consistent flow of economic news releases which should work to loosen up the currency markets and provide a clearer picture of global economic strength.
Gold lost ground this week and the recent rise in stocks around the world has been on the back of very low volume. The possibility that the U.S. dollar will regain some of the strength it lost recently next week is not that far fetched.
Stocks:
On Wall Street today stocks traded mostly flat after mixed data on U.S. retail sales and consumer sentiment provided conflicting signals as to the state of the economic recovery. However, the major indexes did edge higher for the second straight week.
The Dow gained 12.85 points today or 0.12 percent, the S&P 500 lost 0.25 point or 0.02 percent, and the Nasdaq closed 0.80 point lower or 0.03 percent.
Currency pair in focus: USD/JPY
Today we are looking at the daily chart of the USDJPY. A fakey setup has formed and this is one of my favorite price action setups. You will not find this price action setup traded the same way any where else on the internet. This setup is my proprietary price action setup and my students have really come to enjoy it.
This USDJPY fakey has formed off of a confluent resistance level near 91.00 and we can see there is not much in the way of support until about 88.50.
There are some other great price action setups that formed on Friday that are all discussed in detail in the member’s trading forum. Please check it out for more great trade ideas.
For a more in-depth analysis of the major FX pairs as well as forex market commentary, please check out my price action trading course.
Daily Forex Market Commentary:
The U.S. dollar traded mixed against most currencies as conflicting data over U.S. trade balance and weekly unemployment claims worked to perpetuate already choppy trading conditions.
The greenback lost slightly to the euro, pound, franc, and Canadian dollar while gaining slightly against the Australian dollar, New Zealand dollar, and remaining unchanged against the Japanese yen.
Looking ahead, tomorrows U.S. retail sales data may prove to be a catalyst to get the markets moving again. Conditions have been very choppy this week and most currency pairs have traded erratically and with very little direction or volume. It appears as though the markets will need to receive more data indications that the economy is continuing to improve or that it is stalling before traders and investors determine a direction.
Stocks:
On Wall Street today stocks staged a late session rally on the back of advancing banking and retail shares. A scare over the possibility that rising inflation in China might cause them to raise interest rates kept stocks in negative territory most of the day.
However, retailers posted big gains with online retailer Amazon.com leading the way with a 2.4% rise one day before the monthly U.S. retail sales report. A renewed sense of optimism over the U.S. economy helped to offset concerns over the possibility of rising interest rates in China and the U.S.
The Dow closed 44.51 points higher or 0.42 percent, the S&P climbed 4.60 points or 0.40 percent to close out at a 17 month high, and the Nasdaq closed up 9.51 points or 0.40 percent.
Currency pair in focus: NZD/USD
Let’s take a look at how to actually execute a pin bar trade. We can see in our chart below the pin bar setup that we first discussed in yesterday’s commentary.
The entry trigger in this case was a break down of the low of the pin bar, so we sell on stop 1 pip below the low at 0.7006. Our stop loss needs to be placed somewhere near or just above the high of the pin bar, in this case we have it at 0.7080 which is in the top 25% of the pin bar tail.
Our target is placed near the next logical support level which is around 0.6850. Notice these trading parameters provide a risk to reward ratio of at least 1:2, this is what you want to look for.
We teach traders how to trade high probability setups, such as this NZDUSD pin bar from a key level, that provide risk to rewards of 1:2 or better. Price action trading is great.
For a more in-depth analysis of the major FX pairs as well as market commentary, please check out my forex trading course.
Daily Forex Market Commentary:
The U.S. dollar traded mostly higher today as both Gold and Crude Oil fell. Crude Oil closed down 0.4% at $81.17 a barrel after spiking up to hit a high of $83.12 a barrel, the highest price since early January.
The greenback gained modestly on the euro, franc, pound, yen and kiwi dollar, while losing modestly to the Canadian dollar and Australian dollar.
Looking ahead, economic reports will likely influence the currency markets over the next 48 hours. Tomorrow we will see U.S. Trade Balance and weekly Unemployment Claims while Friday brings us U.S. Retail Sales and Consumer Sentiment.
Stocks:
On Wall Street today stocks closed modesty higher on the back of hopes that renewed business demand will boost corporate profits. Bank and technology shares led the way with the Nasdaq closing up 18.27 points or 0.8 percent, the S&P was up 5.16 or 0.5 percent, and the Dow was only up 2.95 points or less than 0.1 percent.
Volume has been light this week as there has not been much economic data to fuel the market. Reports on weekly unemployment claims, retail sales, and consumer sentiment will come out over the next two trading days and should provide some sense of clarity about the strength of the economy.
Currency pair in focus: NZD/USD
Today we are taking a look at the daily chart of NZDUSD. A well defined bearish pin bar has formed showing clear rejection of the very strong resistance zone between 0.7050-0.7100.
This price action setup is meeting all the characteristics for a well formed pin bar setup. It is also showing clear rejection of a confluent level which gives this setup added significance.
We like to see these types of price action setups here at LTTTM, we hope that you enjoy our simple yet highly effective take on price action trading, for more education, setups, and commentary check out the member’s forum
For a more in-depth analysis of the major FX pairs as well as trading strategies, please check out my price action forex trading course.
Daily Forex Market Commentary:
The U.S. dollar traded mixed today; closing higher against the euro, pound, and Swiss franc, but losing ground to the Australian dollar, New Zealand dollar, Canadian dollar, and Japanese yen.
Gold closed slightly lower and Crude Oil has been struggling to get past the $80-$82/barrel mark.
Looking ahead, more consolidation seems to be likely this week in the FX markets. Economic reports pick up starting tonight in Europe and continue through the end of the week. These should provide a catalyst for more currency movement than we have seen so far this week and hopefully some great price action setups.
Stocks:
On Wall Street today the major stock indices closed modestly higher. The Dow closed up just 11.86 points or 0.1 percent after being up 60 points earlier in the session, the S&P 500 was up 0.2 percent, and the Nasdaq closed up 0.4 percent.
Market analysts note the Dow Jones Industrial Average is up 61.4% since hitting a 12-year low at 6,547 one year ago today and these types of gains are not sustainable over the long term. The market is likely to consolidate and trade choppy until employment numbers start to show job creation instead of job cuts.
Currency pair in focus: AUD/USD
Today we are looking at the 4 hour chart of AUDUSD to analyze a great pin bar setup that kicked off this most recent up move in the AUDUSD.
Notice how both of the pin bar setups in this chart formed off the same resistance level. You may not have caught the first one, but once the second one formed off the confluent level near 0.8800 there was a high probability it was going to move higher from there.
Price action setups such as this 4 hour AUDUSD pin bar setup are often very reliable and provide a great method to trade the forex market with.
For a more in-depth analysis of the major FX pairs as well as market commentary, please check out my forex trading course.
Daily Forex Market Commentary:
On Wall Street today stocks traded mixed with the Dow closing down 13.68 or 0.1 percent, the S&P 500 closed down 0.20 point or less than 0.1 percent, and the Nasdaq closed up 5.86 points or 0.3 percent.
Cisco Systems and Blackberry maker Research in Motion led the push higher in the Nasdaq composite index which closed out at 2,332.21, its highest close since September 2008.
Few economic reports for the first half of this trading week mean traders will be looking for other cues to market direction.
Economic news releases will begin to pick up starting on Wednesday and running through the end of the week as the market will see reports on wholesale and business inventories, trade balance, unemployment claims, retail sales and consumer sentiment among others.
Currencies:
The currency markets took a cue from stocks today and remained relatively quiet.
The U.S. dollar rose against the British pound but remained essentially unchanged against the Euro and Swiss Franc.
The Australian dollar, Canadian dollar, New Zealand dollar, and Japanese yen all gained modestly on the greenback. Gold fell.
Currency pair in focus: EUR/JPY
Today’s currency pair in focus is the EURJPY. We don’t usually use trend lines here at LTTTM as we feel they are too subjective overall. However, sometimes you get a rather obvious one that does a good job at pointing out a channeling market, such as the current conditions in EURJPY.
We can see a small pin bar setup has formed off the top of this descending channel. We like this price action setup because it is signaling a resumption of the dominant trend and generally pin bars from key levels like this one are the most profitable.
There were a few more very solid price action setups that occurred in other pairs today, check out our member’s forum for more chart analysis and price action commentary.
For a more in-depth analysis of the major FX pairs as well as market commentary, please check out my forex trading course.
Daily Forex Market Commentary:
On Wall Street today stocks jumped across the board as investors cheered a better than expected U.S. jobs report. The report showed that fewer jobs were cut in February than analysts had anticipated while the unemployment rate stayed at 9.7% instead of jumping to 9.8% as expected.
The Dow closed up 122.06 points or 1.2%, the S&P 500 closed up 15.73 points or 1.4%, and the Nasdaq was up 34.04 points or 1.5 percent.
Currencies:
The better than expected U.S. jobs report also caused riskier currencies to rally today. The big winners were the British pound, as well as the Australian dollar. The U.S. dollar fell against most of the majors but rallied strong against the Japanese yen as trader’s flocked out of the safe-haven yen in favor of currencies with higher interest yields.
Currency pair in focus: AUD/JPY
In today’s chart we are focusing on the AUDJPY pin bar setup that we discussed in yesterday’s commentary.
As we can see the trade worked out nicely and popped up right into our recommended target zone of 82.00-82.50, hitting a high of 82.29 for the day.
Price action setups like these are the ones you want to look for; we analyze the major FX pairs each day in the member’s commentary and post up our trade recommendations there. Pin bars from confluent levels like this pin bar setup in AUDJPY are one of the most consistently profitable ways to trade forex.
For a more in-depth analysis of the major FX pairs as well as forex market commentary, please check out my price action trading course.
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