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Trading Setups / Chart in Focus:
EURJPY
The Japanese yen surged against the other majors today on the final trading day of 2011. The EURJPY had a very weak showing today as it broke down to fresh multi-year lows and closed below 100.00.
As this market is obviously in a protracted downtrend, we are looking to sell rallies back into resistance on confirmation from a price action sell signal. We would note that the breakdown area near 100.50 – 101.00 would provide a good resistance level to watch for sell signals.
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Forex Commentary:
In the currency markets today, the euro closed the day little change against the U.S. dollar a day after hitting a fresh 15-month low. The euro lost over 3 percent to the greenback this year as leaders in the euro-zone have failed to fix the region’s continuing debt crisis.
In other currency markets, the British pound gained on the U.S. dollar, moving to $1.5509 from $1.5395. The U.S. dollar was down significantly against the yen today, dropping to 76.95 from 77.62. The greenback was lower against the other majors today too.
Other Markets:
In the U.S. markets today, the S&P 500 ended a wild year essentially where it started; unchanged, losing only 0.003 percent for 2011. The Dow gained 5.5 percent for 2011 and the Nasdaq lost 1.8 percent.
On Friday, the Dow lost 69.48 points, or 0.57 percent, the S&P 500 dropped 5.42 points, or 0.43 percent, and the Nasdaq lost 8.59 points, or 0.33 percent.
Upcoming important economic announcements: 1/3/2012
4:30am EST: Britain – Manufacturing PMI
10:00am EST: United States – ISM Manufacturing PMI
2:15pm EST: United States – FOMC Meeting Minutes
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Continue Reading How to Trade Successfully With a Day JobTrading Setups / Chart in Focus:
EURUSD
The EURUSD moved modestly lower early in today’s session as the pin bar setup that we initially discussed on December 21st continued to pay off. The market then reversed the day’s losses and closed marginally higher on the day, forming a bullish counter-trend pin bar.
However, we are looking to stay on the side of the down-trend as we still see the potential for this market to fall further. In the members’ area we are discussing the potential for this market to pop up into the dynamic resistance layer between the 8 and 21 day EMAs, so we will watch this resistance layer for potential intra-day or daily price action sell signals in order to re-join the existing downtrend.
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Forex Commentary:
In the currency markets today, the U.S. dollar gave back some of its recent gains against the euro after positive U.S. economic news gave a boost to equities and riskier assets.
The British pound lost modest ground to the U.S. dollar today; it has lost about 1.3% against the greenback for 2011.
The dollar was lower against the other majors today as risk appetite improved.
Other Markets:
In the U.S. markets today, stocks gained around 1 percent on the back of positive economic news.
The Dow added 135.63 points, or 1.12 percent, the S&P 500 gained 13.38 points, or 1.07 percent, and the Nasdaq added 23.76 points, or 0.92 percent.
Upcoming important economic announcements: 12/30/2011
n/a
Trading Setups / Chart in Focus:
EURUSD
The EURUSD broke down and out of its recent inside bar consolidation range today. We can see the pin bar strategy from December 21st has come off with the implied direction of the downtrend. We are seeing price sitting at support near 1.2950 right now and if this level breaks we are anticipating a larger move lower while looking to sell any rallies back up to intra-day or daily resistance pending price action confirmation.
GBPUSD
The GBPUSD moved significantly lower today and we can see the pin bar setup that we first discussed in our members’ commentary from December 21st has paid off nicely for those traders who were able to ‘set and forget’ and wait through the 4 days of sideways chop. We would also note that price provided a nice 50% entry opportunity during the previous 4 days of consolidation, this made for a very good risk reward ratio for savvy price action traders. Today a 4hr fakey setup formed just prior to the large move lower, this provided a second sell-signal prior to today’s large move lower and some of our members in the forum caught today’s large move from the 4hr fakey.
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Forex Commentary:
In the currency markets today the euro lost about 1 percent against the U.S dollar and Japanese yen, this came the day before a very important auction of Italian debt.
The EURUSD hit a new 11-month low of $1.29109 and a fresh 10-year low against the Japanese yen as new data indicated that banks were sitting on cash they recently got from the ECB, instead of lending it out, this is a very bad sign for the economy in the euro-zone for the upcoming year.
The British pound lost significant ground to the U.S. dollar today, closing lower by over 200 pips. The other majors were also lower against the greenback today.
Other Markets:
In the U.S. markets today, stock indexes lost more than 1 percent in light trading as many investors feared a rough start to the new trading year.
The Dow dropped 139.94 points, or 1.14 percent, the S&P 500 lost 15.79 points, or 1.25 percent, and the Nasdaq lost 35.22 points, or 1.34 percent.
Upcoming important economic announcements: 12/29/2011
8:30am EST: United States – Unemployment Claims
10:00am EST: United States – Pending Home Sales m/m
Trading Setups / Chart in Focus:
EURUSD
The EURUSD has seen a series of consolidating inside bars over the last 4 trading days. The pin bar setup from December 21st is still valid, but we will need to see price contained below 1.3200 resistance for the downtrend to continue. We might not see any volatility until next week when the New Year gets underway, as many of the bigger players are away from the markets the last week of the year. However, we are expecting a big year ahead and are looking forward to the price action trading opportunities coming our way.
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Forex Commentary:
In the currency markets today, the euro consolidated just above an 11-month low against the U.S. dollar as trading was very thin today ahead of the year’s end.
Trading is expected to be very light this week into the New Year holiday as many larger players have already exited the market for the year.
The other majors were also very calm today trading in very tight ranges as volatility was low.
Other Markets:
In the U.S. markets today, stocks closed the day basically unchanged after seesawing between gains and losses. Volume was very light today after a last week’s strong rally.
The Dow dropped 2.65 points, or 0.02 percent, the S&P 500 gained 0.10 of a point, or 0.01 percent, and the Nasdaq gained 6.56 points, or 0.25 percent.
Upcoming important economic announcements: 12/28/2011
5:30am EST: Switzerland – KOF Economic Barometer
23rd December 2011 – Christmas Wishes
I wanted to take the time to say Merry Christmas & Happy Holiday’s to all our loyal followers. We at Learn To Trade The Market are truly happy that we can provide honest and practical price action analysis each day to thousands of Forex traders and we genuinely thank each one of you for your continued support.
We look forward to 2012 and can see the markets are going to provide plenty of volatility and opportunities for profit. Now is the time to think about what you want in the year ahead; do you want to take your trading to the next level and finally kick all your bad trading habits? Do you want to learn practical price action trading skills that will guide you throughout 2012 and beyond?
If you want to solidify your trading ability and learn to trade and understand the natural price action of the market, you should consider joining my Forex trading course and members’ community. Now is a great time to join because I’m offering a Special Christmas Discount. Consider it a Christmas present to yourself that will reward you many times over by providing you with advanced trading skills to navigate the challenging market conditions ahead. Click Here To To Learn More.
Whatever you decide to do in 2012, trading or otherwise, I wish you all the best and a happy and peaceful holiday season.
Here is our most recent trading lesson for you to read over the Christmas break: Nial Fuller’s Guide to Successful Forex Trading in 2012
- Nial Fuller and team
2011 is coming to an end and there’s no better time than now to kick all the negative trading habits that plagued your trading this year and start 2012 off with a fresh and positive start. Today’s lesson is going to give you a comprehensive yet concise guide to clean up your trading strategy and your trading psychology.
Continue Reading Nial Fuller’s Guide to Successful Forex Trading in 2012Trading Setups / Chart in Focus:
EURUSD
The EURUSD pin bar setup that we discussed yesterday saw price rotate higher today to about the 50% level of the pin bar’s range, this provided a good opportunity for a tight stop and large risk reward potential. Price basically consolidated today and closed the day near unchanged, yesterday’s pin bar is still valid and we could see a resumption of the downtrend if price continues to maintain itself below the 21 day EMA resistance level.
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Upcoming important economic announcements: 12/23/2011
8:30am EST: Canada – GDP m/m
8:30am EST: United States – Core Durable Goods Orders m/m
10:00am EST: United States – New Home Sales
Trading Setups / Chart in Focus:
EURUSD
The EURUSD formed a bearish pin bar in the dynamic 8 / 21 EMA resistance layer today. This pin bar is also showing rejection of the horizontal level through 1.3200, and it’s with the downtrend, so it’s a confluent setup. Support comes in near 1.2950 – 1.2900, and we could see a larger move lower if this level breaks.
AUDUSD
The AUDUSD formed a large bearish pin bar rejection candle today, showing rejection of the near-term resistance through 1.0200 area. We could see a resumption of negative momentum if price can stay contained underneath the high of today’s pin bar.
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Forex Commentary:
In the currency markets today, the EURUSD closed lower and rejected an intra-day push higher on the back of more negative news on the euro-zone debt crisis.
The GBPUSD and AUDUSD formed large and obvious bearish pin bar rejection setups today, showing obvious signs of a strong intra-day reversal and the potential for negative momentum to resume.
The greenback was higher against the Japanese yen today, buying 78.07 yen, up from 77.88 on Tuesday.
Other Markets:
In the U.S. markets today, the Nasdaq lost about 1 percent as technology shares fell lower. The Dow and S&P 500 gained modestly as concerns about the European debt crisis faded.
The Dow gained 4.16 points, or 0.03 percent, the S&P 500 added 2.42 points, or 0.19 percent, and the Nasdaq lost 25.76 points, or 0.99 percent.
Upcoming important economic announcements: 12/22/2011
4:30am EST: Britain – Current Account
8:30am EST: United States – Unemployment Claims
Trading Setups / Chart in Focus:
EURUSD
The EURUSD rotated higher today, closing the day at the 8 day EMA resistance level. If price continues to push higher we will watch the dynamic resistance layer between the 8 and 21 day EMAs for price action sell signals to re-join the downtrend.
GBPUSD
The GBPUSD pushed significantly higher today and closed back above the 21 day EMA resistance level. We are currently waiting to see what develops in this market, if price moves up to resistance near 1.5750 area we would watch for daily price action sell signals, but right now there is nothing to do but wait for some obvious price action to develop from a core level.
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Forex Commentary:
In the currency markets today the U.S. dollar lost ground across the board as a strong U.S. housing report and positive economic data out of Germany worked to restore risk appetite and boost stocks, commodities, and riskier currencies.
The EURUSD moved to $1.3081 from $1.2997, the GBPUSD was up substantially to $1.5663 from $1.5497 on Monday.
Crude oil futures rose about 3% today as commodities were stronger, including gold and silver.
Other Markets:
In the U.S. markets today, stocks had their best day in three weeks on the back of positive economic data out of Germany and the U.S.
The Dow added 337.32 points, or 2.87 percent, the S&P 500 gained 35.95 points, or 2.98 percent, and the Nasdaq gained 80.59 points, or 3.19 percent.
Upcoming important economic announcements: 12/21/2011
Tentative: Japan – BOJ Press Conference
4:30am EST: Britain – MPC Meeting Minutes
4:30am EST: Britain – Public Sector Net Borrowing
8:30am EST: Canada – Core Retail Sales m/m
10:00am EST: United States – Existing Home Sales
4:45pm EST: New Zealand – GDP q/q
Trading Setups / Chart in Focus:
EURUSD
The EURUSD moved modestly lower today from the pin bar / false-break setup that formed on Friday. If the inside bar from last Thursday breaks to the downside we would see a fakey setup trigger. Keep in mind that support is close below near 1.2900, but if this level breaks we could see a larger move to the downside.
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Forex Commentary:
In the currency markets today, the EURUSD moved lower on the back of comments from the European Central Bank President on the euro-zone debt crisis. The EURUSD was trading at $1.2997 about 1 hour before the New York close, down from Friday’s close at $1.3036.
The other majors were also lower against the U.S. dollar today as risk-aversion returned to the markets. Trading is expected to be light this week due to the upcoming Christmas holiday.
Other Markets:
In the U.S. markets today, stocks moved to their lows on the day about 1 hour before the New York close on the back of pessimistic comments from a meeting of European Union finance ministers.
The Dow was down 102.02 points, or 0.86 percent, the S&P 500 dropped 13.95 points, or 1.14 percent, and the Nasdaq was down 30.29 points, or 1.19 percent.
Upcoming important economic announcements: 12/20/2011
4:00am EST: Euro-zone – German Ifo Business Climate
7:00am EST: Canada – Core CPI m/m
8:30am EST: United States – Building Permits
4:45pm EST: New Zealand – Current Account
Tentative: Japan – Monetary Policy Statement
Tentative: Japan – Overnight Call Rate
Weekly Forex Chart Outlook For December 19th – 23rd 2011
EURUSD
The EURUSD is clearly still in a downtrend, and we are looking to sell this market near horizontal or dynamic resistance levels pending price action confirmation. We can see a small pin bar / false break that formed on Friday and if price moves lower from this setup next week we could see the downtrend resume. Alternatively, if the rotation higher continues, we will watch resistance near 1.3150 and slightly above for intra-day or daily price action sell signals.
EURJPY
The EURJPY has made a nice move lower from the obvious pin bar rejection setup on December 2nd. We are seeing price consolidating just above support near 100.75 now. We would look to sell this market on a rotation higher into resistance. We would watch the horizontal level near 102.50 as well as the 8 / 21 EMA layer for potential sell signals on a rotation higher.
GOLD
The Gold market had a precipitous fall this week after the small pin bar setup from December 9th gave way to a huge sell-off in the precious metal. We did discuss this pin bar thoroughly before it came off to the downside and you can see this in last week’s weekly Forex outlook. I personally cleaned up on this setup and many of our members did too. For next week, we are looking at resistance near $1600.00, and we can see price closed essentially right at this level. If it moves higher we will watch the 8 / 21 day EMA dynamic resistance layer for potential sell-signals to re-join the downtrend. Support is seen near the pin bar low from September 26th at $1532.15.
DOW Jones Cash
The Dow Jones moved significantly lower this week off the pin bar that formed on Tuesday of this week. This pin bar was discussed extensively in the Dow Jones thread in our members’ area. We are seeing support close below near 11,650 area. If price can close below this support next week we are seeing potential for a move into the next support near 11,200′s. Otherwise, we would expect to see range-bound conditions pick back up if price cannot break support this week, as there is an obvious trading range between about 12,200 and 11,600.
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Trading Setups / Chart in Focus:
EURUSD
The EURUSD pushed modestly higher today but closed the day well of its highs forming a small pin bar that created a false-break of the mother bar and inside bar structure from the last two days. We would have preferred to see this setup form closer to 1.3150, but if the mother bar low breaks we could indeed see lower prices next week. If the rotation higher continues we will watch resistance near 1.3150 and slightly higher for potential sell signals to rejoin the downtrend.
GBPUSD
The GBPUSD pushed higher early in today’s session but could not maintain higher prices closing the day well off the highs and creating a false break of the inside bar / mother bar from the last two days and showing rejection of the 8 day EMA resistance layer. We would need to see a break of support near 1.5400 and the mother bar low from Wednesday to see a continuation of the downtrend.
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Forex Commentary:
In the currency markets today, the euro was buoyant against the U.S. dollar but lost some ground into the New York close as new credit warnings from ratings agency Fitch came against six euro-zone countries.
The U.S. dollar was relatively quiet against all the majors today as trading became lighter ahead of the holiday season.
Other Markets:
In the U.S. markets today, an intra-day rally lost strength into the close as investors were stuck between optimism over better U.S. economic data and pessimism over the European debt crisis.
The Dow lost 2.42 points, or 0.02 percent, the S&P 500 added 3.91 points, or 0.32 percent, and the Nasdaq gained 14.32 points, or 0.56 percent.
Upcoming important economic announcements: 12/18/2011
7:00pm EST: New Zealand – NBNZ Business Climate
12/19/2011
10:30am EST: Euro-zone – ECB President Draghi Speaks
7:30pm EST: Australia – Monetary Policy Meeting Minutes
Trading Setups / Chart in Focus:
EURUSD
The EURUSD consolidated today and formed an inside bar. We would look to sell on a rotation higher into resistance near 1.3150 or slightly above, pending price action confirmation. We can see support coming in around 1.2900 which is visible on the weekly chart, this level will need to hold if the EURUSD is to stabilize around current levels.
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Forex Commentary:
In the currency markets today, the U.S. dollar gave up some of its recent gains to the other majors as stronger U.S. jobs numbers made riskier currencies more attractive to traders.
The EURUSD gained modest ground today, closing at $1.3014, up from $1.2982 on Wednesday; the euro is down about 3.2% this month over fears about the European debt crisis.
In other currency trading the GBPUSD moves to $1.5511 from $1.5466 on Wednesday, the greenback lost modest ground against the other majors as well.
Other Markets:
In the U.S. markets today stocks gained ground on the back of strong data on the U.S. economy and better-than-expected profits from FedEx, this news worked to offset more pessimistic news from the euro-zone.
The Dow added 45.33 points, or 0.38 percent, the S&P 500 gained 3.93 points, or 0.32 percent, and the Nasdaq added 1.70 points, or 0.07 percent.
Upcoming important economic announcements: 12/16/2011
8:30am EST: United States – Core CPI m/m
Trading Setups / Chart in Focus:
Dow Jones Cash
The Dow Jones is moving lower after forming a bearish pin bar rejection of the 12000 resistance area. We discussed this setup thoroughly in our members’ area before it came off and I am personally short here and am watching support near 11680 as a potential target. It’s a bit of a higher risk trade since it was counter to the recent up move, but due to the obvious resistance level and the pin bar that showed clear rejection of it, the setup was confluent and valid.
AUDUSD
The AUDUSD continued its downward track today and we can see this market is quickly heading toward support near 0.9700. We would look to sell at resistance on a rotation higher and a bearish price action signal on the intra-day or daily charts.
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Forex Commentary:
In the currency markets today, the EURUSD dropped and closed below $1.30 after borrowing costs in Italy rose significantly higher at a bond auction and underscored fears about the euro-zone debt crisis.
The EURUSD fell to a low of $1.2945, before closing slightly higher around $1.2982, down from $1.3034 at Tuesday’s close.
The U.S. dollar was buoyant across the board today after yesterday’s Federal Reserve meeting provided no new mention of new stimulus measures, such measures tend to cause a country’s currency to weaken since it means more money is printed.
Other Markets:
In the U.S. markets today, stocks lost ground for a third day in a row, hitting their lowest level in two weeks as risk aversion caused commodities and equities to move lower and moved the euro to an 11-month low against the U.S. dollar.
Gold hit its lowest level since the beginning of October and commodity-related shares were sent lower by a strong U.S. dollar.
Crude oil for January delivery dropped $5.19 a barrel, or 5.18%.
The Dow lost 131.46 points, or 1.10 percent, the S&P 500 lost 13.91 points, or 1.13 percent, and the Nasdaq dropped 39.96 points, or 1.55 percent.
Upcoming important economic announcements: 12/15/2011
3:30am EST: Switzerland – Libor Rate
3:30am EST: Switzerland – SNB Monetary Policy Assessment
3:30am EST: Switzerland – SNB Press Conference
4:30am EST: Britain – Retail Sales m/m
8:30am EST: United States – PPI m/m
8:30am EST: United States – Unemployment Claims
10:00am EST: United States – Philly Fed Manufacturing Index
Trading Setups / Chart in Focus:
EURUSD
The EURUSD lost significant ground today as it crashed through support near 1.3150 like a hot knife through butter. The market is obviously bearish but is a bit extended here. We would look to sell up near the break down level of 1.3150 if price rotates higher and forms any bearish price action signals. The next main support can be seen on the weekly chart near 1.2900.
AUDUSD
The AUDUSD is beginning to look increasingly bearish as we can see price rejected the intra-day push higher today and the 8 / 21 day EMA’s are now crossed lower. We see the potential for a re-test of support near 0.9700 and a gap fill if price continues its downward track. Look to sell from resistance on rotations higher, pending price action confirmation.
Check our latest price action trading lesson: How To Trade Key Chart Levels in Forex
Christmas Special Promotion - To Celebrate Christmas I’m Offering A Special 35% Discount On My Forex Trading Course, Live Trade Setups Forum and Daily Trade Setups Newsletter – For More Information Click Here.
Forex Commentary:
In the currency markets today, the euro dropped to an 11-month low against the U.S. dollar as the debt crisis in Europe continues to plague global markets.
The EURUSD sliced through support near $1.3150 and closed the day at $1.3034, down from $1.3186 yesterday.
In other Forex trading, the GBPUSD dropped to $1.5487 from $1.5582, the AUDUSD fell to $1.0012 from $1.0075, and the USDJPY was up to 77.98 from 77.88.
Other Markets:
In the U.S. markets today, stocks fell for the second day in a row after the Federal Reserve did not mention any new stimulus efforts to help ease the effects of the growing debt crisis in Europe.
The Dow dropped 66.45 points, or 0.55 percent, the S&P 500 lost 10.74 points, or 0.87 percent, and the Nasdaq lost 32.99 points, or 1.26 percent.
Upcoming important economic announcements: 12/14/2011
4:30am EST: Britain – Claimant Count Change
9:30pm EST: China – HSBC Flash Manufacturing PMI
Trading Setups / Chart in Focus:
Gold
Gold dropped significantly lower today as the pin bar from Friday came off to the downside and price broke down through support at $1700.00. I discussed this pin bar strategy as a potential short trade in the members’ forum over the weekend, and many of our members took this trade that has returned a very nice risk reward. We also discussed 4hr bearish pin bars in the EURUSD and GBPUSD in our members’ daily commentary from Friday and in the forum over the weekend.
EURUSD
The EURUSD moved significantly lower today and closed the day just above support near 1.3150. We can see the fakey with pin bar setup from December 2nd has paid off nicely after chopping sideways for about a week. If price closes below 1.3150 we could see the downtrend extend, otherwise we will see consolidation near this support or a bounce higher back into the 8 / 21 dynamic EMA resistance.
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Forex Commentary:
In the currency markets today, the EURUSD moved to a ten-week low over worries that the new financial agreement between European leaders will not be enough to stop the euro-zone’s debt crisis.
The euro dropped to $1.3186 against the dollar, down from $1.3369 on Friday.
In other currency trading, the GBPUSD dropped to $1.5580 from $1.5661 on Friday. The greenback rose to 77.90 Japanese yen from 77.54, 1.0269 Canadian dollars from 1.0182, and 1.0070 Australian dollars from 1.0213.
Other Markets:
In the U.S. markets today, stocks lost significant ground as concerns about the euro-zone debt crisis continued. Markets were spooked today when major credit ratings agencies gave warnings that leaders in Europe still have not done enough to stop the region’s debit crisis from worsening over time.
The Dow lost 162.72 points, or 1.34 percent, the S&P 500 lost 18.70 points, or 1.49 percent, and the Nasdaq lost 34.59 points, or 1.31 percent.
Upcoming important economic announcements: 12/13/2011
4:30am EST: Britain – CPI y/y
5:00am EST: Euro-zone – German ZEW Economic Sentiment
8:30am EST: United States – Core Retail Sales m/m
8:30am EST: United States – Retail Sales m/m
2:15pm EST: United States – FOMC Statement
7:30pm EST: Australia – Trade Balance
Weekly Forex Chart Outlook For December 12 -16 , 2011
Check out our latest price action trading lesson : How To Trade Forex From Key Chart Levels
Christmas Special Promotion - To Celebrate Christmas I’m Offering A Special 35% Discount On My Forex Trading Course, Live Trade Setups Forum and Daily Trade Setups Newsletter – For More Information Click Here.
Trading Setups / Chart in Focus:
EURUSD
The EURUSD has been consolidating sideways for about 10 days now. Despite all of the negativity surrounding the euro-zone debt crisis there have been some positive signals from European leaders that they are willing to work on stemming the region’s debt problems. This combination of conflicting information has led to some serious chop and volatility in the euro and some of the other majors this week.
In the charts below we can see the daily EURUSD chart showing the seriousness of the recent two weeks of sideways chop. We are sitting on our hands on the daily chart until price breaks out of this recent consolidation.
There have been some good opportunities recently on the 4hr chart in the EURUSD and some of the other majors though. Note on the 4hr EURUSD chart below we can see some pin bars that have worked and some that have failed.
AUDUSD
The AUDUSD formed an excellent counter-trend pin bar strategy and false-break of 1.0330 resistance during Thursday’s trading session. Price then sold off hard into Friday’s session but ended Friday up well off the lows in what was a volatile trading day. We can see that during times of Forex market volatility there is money to be made on the intra-day charts for savvy price action traders.
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Forex Commentary:
In the currency markets today, the EURUSD moved modestly higher in choppy trading. The euro was buoyant today on the back of news that European Union countries were open to signing a treaty that would save the single currency and help to prevent another debt crisis.
The U.S. dollar was mainly lower against the majors today, the GBPUSD moved to $1.5661 from $1.5626, the USDJPY dropped to 77.61 from 77.66, and the AUDUSD moved to $1.0213 from $1.0163.
Other Markets:
In the U.S. markets today, stocks moved higher and closed the week higher as leaders in the euro-zone came to a fiscal agreement to help return confidence to the markets to help the region recover from its sovereign debt crisis.
The Dow gained 186.56 points, or 1.55 percent, the S&P 500 added 20.84 points, or 1.69 percent, and the Nasdaq gained 50.47 points, or 1.94 percent.
Upcoming important economic announcements: 12/11/2011
7:30pm EST: Australia – Home Loans m/m
7:30pm EST: Australia – Trade Balance
Trading Setups / Chart in Focus:
EURUSD
The EURUSD moved lower today after a large 4hr bearish pin bar formed. We can see price rejected the 21 day EMA before moving lower today. We see the potential for a re-test of 1.3150 support in the near-term .
GBPUSD
The GBPUSD created a large false-break of resistance near 1.5700 today, the 1hrt chart fired off a very obvious 1hr long-tailed pin bar just prior to the large move lower today. In times of volatility like this we can watch the 4hr and 1hr charts more closely to get good entries as price action tends to be more pronounced and obvious during volatile markets and especially around core market levels like the 1.5700 resistance in GBPUSD. We see near-term support around 1.5575 and then at 1.5420 and longer-term support at 1.5300 area.
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Forex Commentary:
In the currency markets today, the euro lost ground after the European Central Bank made comments that sounded negative on the possibility of helping out more to support the eurozone bond market.
Both commodity and emerging-market currencies sold-off heavily into the New York close after European Union leaders gathered in Brussels for a summit on the euro-zone’s future.
The U.S. dollar gained across the board as risk-aversion returned to global markets following a disappointing meeting of euro-zone officials.
Other Markets:
In the U.S. markets today, stocks ended lower after the European Central Bank thwarted hopes for more involvement in helping to support debt-stricken euro-zone nations.
Based on the latest available data, the Dow was down by 160 points, or 1.3%, the S&P 500 lost 21 points, or 1.6%, and the Nasdaq lost 37 points, or 1.4%.
Upcoming important economic announcements: 12/9/2011
All Day: Euro-zone – EU Economic Summit
4:30am EST: Britain – PPI Input m/m
8:30am EST: Canada – Trade Balance
8:30am EST: United States – Trade Balance
9:55am EST: United States – Prelim UoM Consumer Sentiment
Tentative: China – Trade Balance
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