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Daily Forex Market Commentary:
On Wall Street today stocks ended higher as retailers’ better than expected monthly sales figures hinted towards further stabilization of consumer spending.
The Dow pushed into back into positive territory for the year, closing up 47.38 point to end the day at 10,444.14, the S&P closed up 4.18 points or 0.37 percent, and the Nasdaq ended up 11.63 points or 0.51 percent.
The U.S. Labor Department will release its monthly jobs report tomorrow at 8:30am EST, this report is widely considered by market analysts to be the most important indicator of economic health.
Currencies:
The U.S. dollar gained strength today against most of the major currency pairs as Gold and Crude Oil both closed lower on the day.
Most of the major currency pairs consolidated within recent trading ranges today as traders await Friday’s U.S. employment numbers.
Currency pair in focus: AUD/JPY
In today’s chart we are focusing on the AUDJPY pair and a bullish pin bar that has formed off support near 79.20.
While this pair has essentially been consolidating with no real trend direction over the past 7 days, today’s pin bar setup gives us some clue that price may rally up to retest resistance near 82.00-82.50 in the near term.
Price action setups such as pin bars from key levels, like today’s setup, often work out very nicely and provide a great high probability method to trade the forex market with.
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.
This forex trading Video shows a Recap of the most recent Pin bar entry setup which finally hits the target and makes 3 to 1 risk reward.
View Live Pin Bar Setup – Recap VideoDaily Forex Market Commentary:
On Wall Street today U.S. stocks pared gains late in the trading session as President Obama stepped up efforts to reform health-care and to pass new banking regulations. The Dow closed down 9.22 points, The S&P 500 gained 0.48 point, and the Nasdaq lost 0.11 point.
Stocks rose earlier in the trading session as a better than expected ISM Non-Manufacturing PMI report and ADP Non-Farm Employment Change report pointed to a strengthening economy and a stabilizing labor market.
The big market moving report will be Friday’s U.S. Non-Farm Employment Change and Unemployment Rate, both released at 8:30am EST this Friday.
Currencies:
The currency markets saw the U.S. dollar weaken today as data indicated the global economic recovery is on track and Greece agreed to further budget cuts in hopes of obtaining European aid.
Crude oil rose toward $81 a barrel as positive economic reports offset a U.S. government report showing a large rise in crude inventories.
The euro continued to climb against the greenback as hopes solidified for a plan to save Greece from its sovereign debt troubles.
Currency pair in focus: USD/CHF
Today’s currency pair in focus is the USD/CHF pair. Last Friday we posted this chart up and pointed out the fakey setup that had formed at that time. Since then we saw back to back bearish pin bar setups develop which further tipped off traders to a possible down side correction within the broader uptrend of this market.
We generally like to trade “with” the trend, however when you get well defined price action setups such as a fakey and then consecutive pin bars from key levels, there is a high probability of a correction. Notice how this correction sold down to the next logical horizontal level of support and resistance.
For a more in-depth analysis of the major FX pairs as well as price action commentary, please check out my forex educational course.
Daily Forex Market Commentary:
Stocks rose on Wall Street today but the advance lost steam into the close, the Dow closed up only .02%, the S&P was up 0.23%, and the Nasdaq closed up 0.32%.
U.S. stocks have risen 8 days out of the past 11 and many market analysts are saying the recent rally is overbought and do for a correction.
Currencies:
The currency markets showed further signs today that recent U.S. dollar strength may be coming to an end, at least temporarily.
The euro and Swiss franc both closed higher against the greenback today as the EURUSD briefly tested 1.3450 support but then got bid higher rather aggressively off this level and USDCHF briefly broke resistance at 1.0875 before getting pushed lower by the bears.
The pound managed to hold ground against the U.S. dollar after it’s hammering by the greenback on Monday and ended the New York session nearly unchanged. Else where, the U.S. dollar lost modest ground to the Australian dollar, gained slightly on the New Zealand dollar, and lost ground to the Canadian dollar and Japanese yen.
Currency pair in focus: EUR/USD
The EURUSD formed another bullish pin bar setup today after what was a rather volatile forex trading session. You can see in the chart below the rectangle is highlighting the lower shadows of 4 pin bar candlestick patterns that have formed off of 1.3450 support in this market over recent trading days.
These types of price action setups off of support areas during downtrends are indicative of possible counter trend momentum building. There is likely to be correction from here at least up to resistance near 1.3800 before the downtrend resumes.
For a more in-depth analysis of the day’s price action setups as well as forex market commentary, please check out my price action trading course.
Daily Forex Market Commentary:
The month of March kicked off with a rally on Wall Street as the major stock indexes closed higher on the back of a record setting deal by insurance giant AIG to sell a major Asian unit and also on gains in semiconductor shares due to SanDisk corp. raising its revenue forecast.
New found hopes for an agreement to resolve the on-going Greece debt problems also encouraged investors.
Positive economic data reports also worked to offset some of the disappointing economic news from last week as U.S. consumer spending increased slightly faster than expected in January and the U.S. manufacturing sector grew.
Currencies:
The currency markets were volatile today; the euro gained big on the pound as evidence by the huge daily bullish move on the EURGBP pair.
The U.S. dollar gained on the euro, pound, Swiss franc, and Japanese yen but lost to the Australian dollar, Canadian dollar and New Zealand dollar as the commodity currencies rose on stock market strength.
Currency pair in focus: EUR/USD
The EURUSD appears to be building a base around bullish price action setups off of support near 1.3450.
We can see in today’s chart that over the last 8 trading sessions we have seen 2 pin bar setups and a fakey setup. These are indications that a counter trend rally may be in the making for this market.
Resistance comes in around 1.3850 and beyond that near 1.4025. Price action setups like the one seen in today’s chart often occur near market turning points and swing points.
For a more in-depth analysis of the day’s price action setups as well as forex market commentary, please check out my price action trading course.
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