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PRICE ACTION FOREX TRADING COURSE
Forex Commentary:
The U.S. dollar and Swiss franc are likely to hold gains next week should tensions in Egypt persist, raising concerns about stability in the Middle East and North Africa and increasing investor demand for safer havens.
A slew of economic data and central bank decisions is due next week, including the U.S. government’s closely watched monthly non-farm payrolls report, but analysts said civil unrest in Egypt, if not contained, could easily trump macro fundamentals.
Both the dollar and Swiss franc rallied on Friday, with the greenback and franc rising 0.8 percent and 1.2 percent, respectively, against the euro.
Trading Setups / Chart in Focus:
NZDUSD
The NZDUSD formed a bearish pin bar setup Friday off the top of its recent trading range between 0.7790 – 0.7550. Price could move lower this week and re-test support near 0.7550 if this pin bar breaks to the downside.
EURUSD
The EURUSD rejected resistance between 1.3700 – 1.3800 on Friday, rotating lower into its 8 day ema. We discussed the potential for a move to the downside in Thursday’s commentary, should price continue to fall this coming week we would keep an eye on support near 1.3430 and the 21 day ema for bullish price action setups.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my price action forex trading course.
Other Markets:
On Wall Street Friday stocks experienced their biggest one-day loss in almost six months as anti-government rioting in Egypt caused investors to flee riskier assets.
The Dow dropped 166.13 points, or 1.39 percent, the S&P 500 lost 23.20 points, or 1.79 percent, and the Nasdaq lost 68.39 points, or 2.48 percent.
Upcoming important economic announcements: 1/31/2011
8:30am EST: Canada – GDP m/m
4:45pm EST: New Zealand – Labor Cost Index q/q
8:00pm EST: China – Manufacturing PMI
10:30pm EST: Australia – Cash Rate
10:30pm EST: Australia – RBA Rate Statement
Forex Commentary:
The U.S. dollar jumped as much as 1.1% against the Japanese yen Thursday after Standard & Poor’s lowered its rating on Japan’s sovereign debt.
The dollar index, which tracks the U.S. unit against a basket of six other currencies, slipped back to 77.707 from 77.776 Wednesday.
Trading Setups / Chart in Focus:
EURUSD
The EURUSD is currently in an area of resistance that runs from about 1.3700 – 1.3800, price will need to break above this resistance to move higher from current levels, otherwise we may see a rotation back to value around the 8 or 21 day emas in the near-term.
We can see in the chart below that the 1.3430 area is now a significant support area, traders should keep an eye on this area for price action setups should price rotate back down into this support next week.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today the Dow came up short of 12,000 again as mixed economic data and corporate earnings found the market struggling to find a directional bias.
The Dow closed up 4.39 points, or less than 0.1%, the S&P 500 closed up 2.91 points, or 0.2%, and the Nasdaq gained 15.78 points, or 0.6%.
Upcoming important economic announcements: 1/28/2011
5:30am EST: Switzerland – KOF Economic Barometer
8:30am EST: United States – Advance GDP q/q
Forex Commentary:
The U.S. dollar lost ground today after the Federal Reserve kept interest rates low and gave a tepid assessment of the U.S. economy which ensure the central bank’s Treasury bond-buying program stays until June.
The EURUSD briefly rose above $1.3700 but gave up those gains on profit-taking ahead of a touted options barrier at $1.3725; if that level goes we may see a move up towards $1.3788.
The euro has gained 2.36 percent on the year so far after plunging 6.6 percent in 2010.
Trading Setups / Chart in Focus:
AUDUSD
The AUDUSD has been in a trading range between about 1.0000 and 0.9830 for about 3 weeks now. We will need to see a decisive break above or below one of these levels to establish a strong leg in either direction.
Until price can break free from this recent trading range we are likely to see more sideways price action.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today the S&P 500 closed at a 29-month high on the back of gains in tech and commodity shares, investors mostly ignored the Federal Reserve’s mediocre economic assessment.
The Dow gained 8.25 points, or 0.07 percent, the S&P 500 added 5.45 points, or 0.42 percent, and the Nasdaq gained 20.25 points, or 0.74 percent.
Upcoming important economic announcements: 1/27/2011
8:30am EST: United States – Core Durable Goods Orders m/m
8:30am EST: United States – Unemployment Claims
10:00am EST: United States – Pending Home Sales m/m
Forex Commentary:
The euro climbed to a two-month high above $1.37 on Tuesday and looked poised to extend gains as momentum turned increasingly bullish after the currency’s recent break above key chart levels.
The GBPUSD nose-dived after a surprise 0.5 percent contraction in fourth-quarter UK gross domestic product, compared with economists’ forecasts of a 0.5 percent gain
The pound fell to a session low of around $1.5750. It last traded down 1 percent at $1.5830. Against the pound, the euro jumped almost 1.5 percent to its highest in two-and-a-half months
Trading Setups / Chart in Focus:
GBPUSD
The GBPUSD lost about 170 pips today after Great Britain’s GPD for the last quarter of 2010 fell 0.5 percent; analysts expected a gain of 0.5 percent.
We can see in the chart below that price had previously shown rejection of resistance near 1.6050-1.6100 early last week. Support comes in near 1.5665, there is a good probability price will re-test this support in the near-term given today’s extremely bearish price action.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today U.S. stocks climbed back from early session losses in what was a flurry of late-day buying to close the day little changed, optimism about earnings over-shadowed disappointing results from blue chips 3M and Johnson & Johnson.
The Dow lost 3.3 points, or 0.03 percent, the S&P 500 added 0.34 point, or 0.03 percent, and the Nasdaq gained 1.70 points, or 0.06 percent.
Upcoming important economic announcements: 1/26/2011
4:30am EST: Britain – MPC Meeting Minutes
10:00am EST: United States – New Home Sales
2:15pm EST: United States – FOMC Statement
2:15pm EST: United States – Federal Funds Rate
3:00pm EST: New Zealand – Official Cash Rate
3:00pm EST: New Zealand – RBNZ Rate Statement
Forex Commentary:
The U.S. dollar fell to a two-month low against the euro on Monday amid a perception that the European debt crisis is easing and the European Central Bank could lift interest rates.
The euro, used by 17 European countries, was at $1.3638 late Monday, up from $1.3602 Friday. The euro reached a high of $1.3685 early Monday, the highest it has been since November 22.
The dollar fell broadly Monday, dropping to 82.49 Japanese yen from 82.60 yen, and 0.9496 Swiss franc from 0.9590 Swiss franc. The British pound traded at $1.5995 Monday from $1.6002 Friday.
The U.S. currency was also lower versus the Australian dollar, Brazilian real and the Nordic currencies.
Trading Setups / Chart in Focus:
AUDUSD
The AUDUSD 4hr pin bar setup that we discussed in the commentary from January 20th has come off very nicely to the upside and hit the target / resistance area near 1.0000.
This price action setup occurred at a confluent support level in the market as this market is currently in a trading range between about 0.9800 and 1.000. We are simply using price action setups to trade the swings between support and resistance.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today stocks resumed their rally led by natural resources and tech shares as investors saw renewed bullish momentum.
The Dow rose 108.68 points, or 0.92 percent, the S&P 500 added 7.49 points, or 0.58 percent, and the Nasdaq gained 28.01 points, or 1.04 percent.
Upcoming important economic announcements: 1/25/2011
Tentative: Japan – BOY Press Conference
4:30am EST: Britain – Prelim GDP q/q
4:30am EST: Britain – Public Sector Net Borrowing
7:00am EST: Canada – Core CPI m/m
10:00am EST: United States – CB Consumer Confidence
2:40pm EST: Britain – BOE Gov King Speaks
Forex Commentary:
The euro hit a two-month high above $1.36 on Friday and its break of important technical levels suggested more gains to come now that anxiety about a euro zone debt crisis has started to wane.
The euro has outperformed the dollar in eight of the last 10 sessions, and Friday’s breach of $1.3570 took it above the 50 percent retracement of its November-to-January slide. It was last up 1 percent at $1.3615
Currency speculators turned long on the euro for the first time in two months in the latest week while they doubled bets against the U.S. dollar, data from the Commodity Futures Trading Commission showed on Friday.
The value of the dollar’s net short position rose to $15.06 billion in the week ended Jan. 18, from a net short position of $7.38 billion the previous week, according to Reuters and CFTC calculations.
Trading Setups / Chart in Focus:
EURUSD
On Friday the EURUSD broke higher and closed above key technical resistance levels. We can see in the daily chart that an inside bar setup formed on Thursday just above old resistance / new support at 1.3400, this inside bar broke higher on Friday and price closed near the week’s high. Resistance comes in near 1.3750.
The 4hr chart formed a solid pin bar setup showing rejection of 1.3400, this price action setup broke higher on Friday; we discussed this setup in our member’s commentary before it came off.
4 HR CHART:
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street Friday the Dow and S&P 500 rose as General Electric Co’s earnings put a positive tone on the economic recovery, ending a two-day losing streak for the benchmark index.
The Nasdaq was tugged lower by Google, ending a week that was marked by investors pulling back from recently outperforming technology stocks.
The Dow added 49.04 points, or 0.41 percent, the S&P 500 gained 3.09 points, or 0.24 percent, and the Nasdaq lost 14.75 points, or 0.55 percent.
Upcoming important economic announcements: 1/23/2011
7:30pm EST: Australia – PPI q/q
1/24/2011
7:30pm EST: Australia – CPI q/q
Tentative: Japan – Monetary Policy Statement
Tentative: Japan – Overnight Call Rate
So you’ve acquired an interest in price action forex trading and you want to get started as soon as possible, but you aren’t quite sure how to begin, or perhaps you aren’t quite sure if what you are currently doing is getting you started on the right track.
Continue Reading How To Start Your Price Action Trading JourneyForex Commentary:
The euro edged higher against the dollar late Thursday, after the U.S. currency posted gains earlier in the day following positive U.S. jobless and home sales data.
During late trading Thursday, the euro rose slightly to $1.3469 from $1.3465 Wednesday.
The euro has been rising since late last week, hitting a nearly two-month high Wednesday, because investors have been expecting European leaders to take more aggressive steps to counter Europe’s debt crisis. Recent successful bond auctions in Spain and Portugal reassured investors that the region’s indebted governments could still raise money.
In other trading Thursday, the British pound fell to $1.5910 from $1.5990, while the dollar rose to 83.04 Japanese yen from 82.06 yen.
Trading Setups / Chart in Focus:
NZDUSD
The Kiwi/Dollar formed a bearish fakey setup with a pin bar yesterday, today this setup came off aggressively to the downside and hit support near 0.7550 with ease. We discussed this price action setup in yesterday’s member’s commentary; some of our member’s entered this trade and made some serious pips.
This setup is a good example of how to use price action setups to trade a range-bound market.
AUDUSD
The AUDUSD formed a bullish rejection pin bar setup off support today just prior to the New York close, given the bearish momentum recently seen in this market, we would prefer to see a break of the high of this pin bar prior to entry.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today stocks moved lower as poor tech and materials earnings failed to live up to expectations, threatening to slow a seven-week bull run.
The declines today were not as sharp as they were yesterday; Morgan Stanley posted stronger-than-expected revenue to help the banking sector rise modestly.
The Dow lost 2.49 points, or 0.02 percent, the S&P 500 dropped 1.66 points, or 0.13 percent, and the Nasdaq lost 21.07 points, or 0.77 percent.
Upcoming important economic announcements: 1/21/2011
4:00am EST: Euro-zone – German Ifo Business Climate
4:30am EST: Britain – Retail Sales m/m
8:30am EST: Canada – Core Retail Sales m/m
Forex Commentary:
The euro hit an eight-week high above $1.35 on Wednesday, boosted by increased confidence in Europe’s ability to defuse its debt crisis, however, the EURUSD did close below $1.3500 and it will need to climb back above it to extend the recent rally.
After hitting an eight-week high of $1.3538 overnight, the euro retreated to $1.3466 by afternoon in New York, still up 0.7 percent.
China has said it wants to move away from a global system dominated by the dollar. If it were to let the yuan to rise more rapidly against the U.S. currency, it would not need to buy as many U.S. Treasuries, which could put upward pressure on U.S. yields. China is the largest foreign U.S. creditor.
Trading Setups / Chart in Focus:
EURJPY
The EURJPY formed an inside / pin bar setup today, just below the significant horizontal area around 111.00 – 111.50.
Momentum has been bullish recently in the EURJPY, but if this inside / pin setup can break to the downside; we may see a deeper rotation back down towards support near 109.50 and possibly beyond that to 108.50. It is worth noting that this setup is against the recent bullish daily momentum, however, it does have the weight of the bearish weekly trend behind it.
EURUSD
The EURUSD recent 4hr pin bar setups that we discussed in recent commentaries have not fared too well against the recent bullish momentum, even though they were well-formed and at strong horizontal resistance. Not all setups work out, it’s just part of trading, it is worth noting these setups were counter-trend and I typically advise traders to trade with the dominant momentum, especially when starting out.
Also, the first pin bar you easily could have gotten your stop to breakeven before it stopped you out, and the second one would likely not have been entered because the low never broke.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today the S&P 500 experienced its worst loss in nearly two months as disappointing results from Goldman Sachs and Wells Fargo put a cap on the recent rally.
The Nasdaq lost more than 1 percent, its biggest daily percentage loss since last November, as disappointing earnings came in from chipmaker Cree Inc, with its stock losing 14.5 percent.
The Dow dropped 12.64 points, or 0.11 percent, the S&P 500 lost 13.10 points, or 1.01 percent, and the Nasdaq lost 40.49 points, or 1.46 percent.
Upcoming important economic announcements: 1/20/2011
8:30am EST: United States – Unemployment Claims
10:00am EST: United States – Existing Home Sales
10:00am EST: United States – Philly Fed Manufacturing Index
12:00pm EST: Switzerland – SNB Chairman Hildebrand Speaks
4:45pm EST: New Zealand – Retail Sales m/m
Forex Commentary:
Central bank buying and strong German economic data pushed the euro to a one-month high above $1.34 on Tuesday, though doubts about Europe’s ability to boost a sovereign rescue fund trimmed its gains in New York trade.
The dollar recovered from a 2-1/2-year low of 0.9837 Canadian dollars after the Bank of Canada kept interest rates at 1 percent and signaled it may stand pat for longer than markets had expected.
Trading Setups / Chart in Focus:
EURUSD
The EURUSD pin bar setup discussed in yesterday’s commentary was invalidated during today’s price action via price breaking the high of the pin, however the EURUSD 4hr chart formed yet another well-defined bearish pin bar showing rejection of this 1.3450 resistance area today.
If we are to get a move to the downside like we have off the other recent bearish pin bars on this chart, price will need to stay below 1.3450. Momentum has certainly been bullish recently so we could get a move higher even with today’s obvious rejection of resistance via this pin bar setup, so anyone taking this setup should at least wait for confirmation via a break of the low of the pin.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today U.S. stocks moved higher, overcoming weak Citigroup results and concerns regarding Apple after Chief Executive Steve Jobs’ medical leave.
The Dow rose 50.55 points, or 0.43 percent, the S&P 500 added 1.78 points, or 0.14 percent, and the Nasdaq added 10.55 points, or 0.38 percent.
Upcoming important economic announcements: 1/19/2011
4:30am EST: Britain – Claimant Count Change
8:30am EST: United States – Building Permits
10:30am EST: Canada – BOC Monetary Policy Report
11:15am EST: Canada – BOC Press Conference
4:45pm EST: New Zealand – CPI q/q
9:00pm EST: China – CPI y/y
9:00pm EST: China – GDP q/y
Forex Commentary:
The euro fell broadly on Monday as hopes for an increase in the euro zone’s bailout fund faded and as investors reassessed a recent rise in European Central Bank interest rate expectations.
“It’s becoming increasingly apparent that Germany doesn’t want an increase in the rescue fund and that’s weighing on euro sentiment today because there were positive expectations building last week,” said Manuel Oliveri, currency strategist at UBS in Zurich.
“We believe the euro is a sell on rallies because investors are not minded to buy euro-denominated assets while structural problems in the euro zone persist,” he added.
The greenback was up around 0.3 percent versus a currency basket .DXY, while traders said a U.S. public holiday on Monday would reduce liquidity into the European afternoon.
Trading Setups / Chart in Focus:
EURUSD
The EURUSD 4hr bearish pin bar setup discussed in last Friday’s commentary has come off to the downside today. A deeper pullback into support near 1.3100 may be in the cards here if we stay under resistance near 1.3400-1.3450.
Support near 1.3100 will likely be significant to watch for price action this week should price move down to re-test this level.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today markets were closed in observance of Martin Luther King Jr. day.
Upcoming important economic announcements: 1/18/2011
4:30am EST: Britain – CPI y/y
5:00am EST: Euro-zone – German ZEW Economic Sentiment
9:00am EST: Canada – BOC Rate Statement
9:00am EST: Canada – Overnight Rate
9:00am EST: United States – TIC Long-Term Purchases
Forex Commentary:
The euro headed for its best week in more than 1-1/2 years on today after successful securities auctions by indebted euro zone members calmed fears of a credit crisis in the region.
“The floor is in for the euro,” said Douglas Borthwick, a managing director for trading at Faros Trading LLC, a forex execution firm in Stamford, Connecticut, who sees the euro between $1.33 and $1.35 in the week ahead and a rally to $1.50 by year end.
That is in in sharp contrast to his view for the U.S. dollar, which is again mired by talk of the United States losing its triple-A credit rating because of rising national debt.
Trading Setups / Chart in Focus:
EURUSD
The EURUSD moved higher today and formed a 4hr pin bar setup in the resistance zone we discussed in yesterday’s commentary. There are a few scenarios for trades here that traders could take advantage into the new trading week.
One is to trade the pin bar setup from Friday on a break of the low of the pin bar, while looking to take profits around 1.3150. The other is to sit tight and see what this market does early next week, as momentum was very bullish last week and we may see the market simply move higher right of the gate next week. Traders could also stay on the sidelines and look to get long on a move down towards the 50% level of 1.3150 pending bullish price action.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street Friday stocks moved higher led by the S&P 500 which posted its seventh straight week of gains after banks led the rally amid healthy volume after encouraging financial results from JPMorgan.
The Dow gained 55.48 points, or 0.47 percent, the S&P 500 added 9.48 points, or 0.74 percent, and the Nasdaq rose 20.01 points, or 0.73 percent.
Upcoming important economic announcements: 1/17/2011
All Day: United States – Bank Holiday
Here is a mixture of Live forex trading Trades, Trading Strategies and much more, so sit down, get a cup of tea/coffee and spend the next hour catching up on some Videos you may have missed over the last year.
View Some of My Favorite Forex Trading Videos VideoForex Commentary:
The U.S. dollar lost to the euro today for the fourth session in a row after the euro was buoyed as European Central Bank chief Jean-Claude Trichet signaled policy makers stood ready to act to counter a recent rise in inflation.
The dollar index, which tracks the greenback against a basket of six other major currencies, lost about 1.09% today, moving down to 79.163.
Trading Setups / Chart in Focus:
EURUSD
The EURUSD has pushed substantially higher this week and is currently hitting the bottom edge of an area of resistance that runs between about 1.3500 – 1.3350.
Traders could look to initiate a short position on some solid bearish price action forming in this resistance area. Given the strength of the recent upward thrust we would wait for a very well-defined bearish price action setup on the 4hr or daily chart prior to initiating any shorts.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today stocks pushed lower after a slide in drug maker Merck weighed on the market and falling commodity prices hit shares of natural resource companies.
Weekly initial jobless claims jumped to their highest level since October last week while food and energy costs lifted producer prices in December, pointing to headwinds for an economy that has shown fresh vigor.
The Dow lost 23.54 points, or 0.20 percent, the S&P 500 lost 2.20 points, or 0.17 percent, and the Nasdaq dropped 2.04 points, or 0.07 percent.
Upcoming important economic announcements: 1/14/2011
4:30am EST: Britain – PPI Input m/m
8:30am EST: United States – Core CPI m/m
8:30am EST: United States – Core Retail Sales m/m
8:30am EST: United States – Retail Sales m/m
9:55am EST: United States – Prelim U of M Consumer Sentiment
Forex Commentary:
The U.S. dollar continued losing ground today against most of the other majors, hitting its lowest level in more than a week on improving global risk appetite and rising commodity prices, which typically work to weaken the greenback.
A healthy bond auction in Portugal drove investors into riskier assets. Investors were hopeful euro-zone finance ministers would beef up the European Union’s rescue fund.
However, in a note to clients, Kathleen Brooks of Forex.com said that “even though today’s auction is encouraging, the risk of a bailout for Portugal and Spain is still strong, and both nations have a hefty debt schedule for the rest of the quarter.”
Trading Setups / Chart in Focus:
AUDUSD 4hr chart
The AUDUSD formed a very well-defined 4 hour fakey / pin bar combo setup today that came off to the upside and closed very bullish at the end of trading in New York.
We can see this support level near 0.9830 gave rise to a very similar fakey / pin bar combo setup back in mid-December that subsequently saw a significantly strong move to the upside prior to this most recent bearish run. Today’s fakey setup goes to illustrate the power and effectiveness of trading price action setups from confluent horizontal levels in the forex market.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today stocks moved firmly higher after European debt fears eased, sparking a broad market advance let by banks and commodity-related shares.
The Dow rose 83.48 points, or 0.72 percent, the S&P 500 added 11.47 points, or 0.90 percent, and the Nasdaq added 20.50 points, or 0.75 percent.
Upcoming important economic announcements: 1/13/2011
4:30am EST: Britain – Manufacturing Production m/m
7:00am EST: Britain – Asset Purchase Facility
Tentative: Britain – MPC Rate Statement
7:00am EST: Britain – Official Bank Rate
7:45am EST: Euro-zone – Minimum Bid Rate
8:30am EST: Canada – Trade Balance
8:30am EST: Euro-zone – ECB Press Conference
8:30am EST: United States – PPI m/m
8:30am EST: United States – Trade Balance
8:30am EST: United States – Unemployment Claims
1:00pm EST: Untied States – Fed Chairman Bernanke Speaks
In the first part of this article we discussed which currency pairs are the best to trade and explained the differences between the majors, crosses, and exotics. Today’s article is going to pick up where last week’s left off; we are going to discuss the best times to trade the forex market and the differences between the various FX trading sessions.
Continue Reading The Best Times to Trade Forex Currency Pairs (Part 2)Forex Commentary:
The U.S. dollar fell against the euro on Tuesday after Japan announced plans to buy bonds that are being issued to finance Europe’s bailout fund.
The Canadian dollar strengthened against the U.S. dollar on Tuesday, as higher commodity prices and a firmer euro increased investors’ risk appetite and helped extend the currency’s run above parity with the greenback.
Trading Setups / Chart in Focus:
AUDUSD
The AUDUSD has been falling lower recently, we can see the 8 and 21 day moving averages have crossed lower, reflecting this recent bearish momentum.
There are a few areas of support coming in close below that traders should keep an eye on. The first one comes in around 0.9750 – 0.9650, then there is another support area further below around 0.9550. Traders should watch these areas closely for bullish price action setups.
Traders could also watch for intra-day rotations back up towards the 8 day ema as potential selling opportunities might present themselves in this scenario with confirmation from a bearish price action setup.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today stocks ended a 3-day losing streak as earnings reports worked to support stocks even as investors worried that rising fuel costs will undercut economic growth.
The Dow gained 34.43 points, or 0.30 percent, the S&P 500 gained 4.73 points, 0.37 percent, the Nasdaq rose 9.03 points, or 0.33 percent.
Upcoming important economic announcements: 1/12/2011
7:30pm EST: Australia – Employment Change
7:30pm EST: Australia – Unemployment Rate
This two-part article will first address the question “which currency pairs are best to trade?”, and next week we will address the question “what are the best times to trade?”
Continue Reading The Best Currency Pairs to Trade & Times to Trade Them? (Part 1)Forex Commentary:
The U.S. dollar fell against the euro late Monday, giving up earlier gains, even as concerns about Europe’s debt crisis grew.
The euro rose to $1.2954 Monday from $1.2934 late Friday after falling below $1.29 earlier in the day, the first time the euro has been that low since September.
Investors worry that Portugal will become the third European Union country to need a bailout in order to avoid defaulting on its debts.
Trading Setups / Chart in Focus:
EURUSD
The EURUSD pushed higher today and closed the day right near the resistance level of 1.2970. We can see in the chart below there is a “band” of resistance from about 1.2970 to about 1.3070 or around the 8 day ema.
Traders could look to sell rallies back up to this resistance area pending some confirmation via bearish price action setups, should any form in this resistance zone.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today stocks fell lower early on but then recovered most of their losses in light trading but still ended the day slightly lower as prospects for strong earnings worked to offset fears that Portugal would be forced into a bailout.
The euro, seen of late as a proxy for investors’ risk appetite, gained 0.5 percent against the U.S. dollar today, recovering from a four-month low.
The Dow dropped 37.31 points, or 0.32 percent, the S&P 500 lost 1.75 points, or 0.14 percent, and the Nasdaq gained 4.63 points, or 0.17 percent.
Upcoming important economic announcements: 1/11/2011
8:15am EST: Canada – Housing Starts
7:30pm EST: Australia – Home Loans m/m
Forex Commentary:
The U.S. dollar rose against the euro Friday after the U.S. released figures showing improvement in the unemployment rate.
Friday was the first time the EURUSD has fell below $1.30 in about four months.
On Friday, the U.S. Labor Department said that the unemployment rate dropped in December to 9.4 percent from 9.7 percent in the previous month. It’s the lowest the unemployment rate has been in 19 months, though the drop was partly because people stopped looking for work. The nation’s economy added 103,000 jobs in December, falling short of expectations.
The U.S. dollar was lower against other major currencies Friday. The British pound rose to $1.5548 from $1.5474. The U.S. dollar fell to 99.24 Canadian cents from 99.62 Canadian cents, and also edged lower to 83.03 Japanese yen from 83.28 yen.
Trading Setups / Chart in Focus:
EURUSD
The EURUSD weekly chart, as seen below, is looking very bearish and has a number of factors coming together that make a strong case for further movement to the downside.
The 8 and 21 week emas have just crossed lower, this is typically a very powerful indication of market sentiment, in this case that the market may move lower. We can see the large weekly bearish pin bar setup from a few weeks back was not violated to the upside, therefore the rejection this candle represents is still relevant.
Into the new trading week, we would like to sell bearish price action setups on rotations back up into intra-day or daily resistance levels, this way we are trading with the dominant daily and weekly bearish trend.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.
Other Markets:
On Wall Street today stocks moved lower after a court ruling in a key foreclosure case prompted investors to pull out of bank stocks, adding to weakness after a lackluster jobs report.
The S&P 500 and Dow both recorded their sixth consecutive week of gains however, the market has remained strong despite expectations that stocks are overdue for a pullback.
The Dow fell 22.55 points, or 0.19 percent, the S&P 500 lost 2.35 points, or 0.18 percent, and the Nasdaq dropped 6.72 points, or 0.25 percent.
Upcoming important economic announcements: 1/9/2011
7:30pm EST: Australia – ANZ Job Advertisements m/m
7:30pm EST: Australia – Retail Sales m/m
Tentative: China – Trade Balance
1/10/2011
10th-13th: Britain – Halifax HPI m/m
3:15am EST: Switzerland – Retail Sales y/y
8:30am EST: Canada – Building Permits m/m
10:30am EST: Canada – BOC Business Outlook Survey
4:00pm EST: New Zealand – NZIER Business Confidence
7:30pm EST: Australia – Trade Balance
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