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PRICE ACTION TRADING FORUM
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.
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.
Daily 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.
Daily Forex Market Commentary:
On Wall Street today stocks closed slightly higher with the Dow up just over 4 points, the S&P up nearly 2 points and the Nasdaq adding 4 points. Overall trading was rather quiet due to another large winter snow storm that hit the Northeastern part of the U.S.
Next week the market receives the all important U.S. Non-Farm Employment Change and Unemployment Rate amongst a truck load of other economic reports. We will keep traders updated as to which reports are the most significant to watch and the times they are released as usual at the end of our daily commentary.
Currencies:
The currency markets relatively quiet today following the lead of equity markets. The U.S. dollar was mostly lower against the majors as commodities rose along with stocks. The exception was the British pound which lost just over 10 pips to the green back.
The upcoming trade week is going to be loaded down with important economic news releases which will likely result in volatile currency trading conditions. This is a bonus for all of us price action traders. Well defined price action setups are more likely to result in big moves under volatile trading conditions.
Currency pair in focus: USD/CHF
Today’s currency pair in focus is the daily chart of the USDCHF. The chart is showing a fakey setup which formed on Thursday and came off to the downside into Friday’s New York close.
The chart shows a previous attempt to break resistance near 1.0850 which was also met with a false break, but not a fakey. The second attempt to break 1.0850 occurred on Thursday of this week and resulted in a fakey setup.
While we don’t generally advise new traders to take counter-trend price action setups such as the one featured in today’s chart, they do often work out if they form near areas of strong support or resistance such as the one we are looking at today.
For a more in-depth analysis of the day’s price action setups as well as forex market commentary, please check out my forex price action trading course.
Daily Forex Market Commentary:
On Wall Street today stocks closed lower with the Dow closing down 0.5 percent, the S&P down 0.2 percent and the Nasdaq down 0.1 percent. Further problems with the debt situation in Greece and rising unemployment in the U.S. were the main causes for the negative movement in equities.
The number of new unemployment claims in the U.S. rose by 22,000 over last week after analysts were expecting a decrease. Also, a disappointing U.S. Core Durable Goods Orders report added to worries about the strength of the economic recovery.
Dept problems in some European countries took the stage again today as rating agencies said they might downgrade Greece’s sovereign debt rating. A downgrade could increase Greece’s borrowing costs as well exacerbate its debt problems.
Currencies:
The currency markets were quite volatile today. The British pound was the big mover, the markets saw the GBPUSD pair close 144 pips lower as the fakey setup highlighted in our last 2 commentaries came off quite nicely. The euro seemed to gain strength today with the EURGBP shooting up and the EURUSD closing up about 9 pips.
The Japanese yen strengthened against all the major currencies as risk aversion dominated today’s world markets. The U.S. dollar was the other big winner today, rising against most of the majors except for a small loss to the euro and Swiss franc and a loss to the Japanese Yen as well.
Currency pair in focus: GBP/USD
The fakey setup that we have been following this week in GBPUSD has worked out quite nicely for our member’s and made most of them some very decent profits. The entry parameters for this price action setup were posted in our member’s forum before the trade unfolded. We analyze the major pairs each day for price action setups including my proprietary fakey setup.
The fakey setup is not taught anywhere else on the internet. The way that I instruct my member’s to trade it is a completely proprietary method and centers around the fundamental fact that the forex market is designed to be contrarian and thus causes many novice traders much pain and suffering.
My price action trading course will teach you how to harness the power of contrarian trading centered around my time tested and highly profitable price action setups that exploit the volatility and contrarian nature of the forex currency market. The power of my forex educational course combined with daily price action analysis is the best way to learn to successfully trade the forex market with minimal stress and confusion.
For a more in-depth analysis of the day’s price action setups and forex market commentary, check out my price action forex trading course.
Daily Forex Market Commentary:
On Wall Street today the Dow closed up 91.75 points as investors had reason for optimism when U.S. Federal Reserve Bank Chairmen Ben Bernanke testified before congress that the Fed will keep U.S. interest rates at exceptionally low rates for an extended period. This buoyed hopes that continued low interest rates will help spur the economy and ultimately the global economic recovery.
European stocks also made some modest gains on Bernanke’s testimony, the FTEUR Index of top shares closed up 0.2 percent after see sawing in and out of positive territory several times throughout the trading session. Germany’s DAX and France’s CAC both also closed up 0.2 percent.
Currencies:
The currency markets were somewhat subdued today with the euro gaining about 30 pips on the U.S. dollar, the pound lost around 20 pips to the green back. The Australian and New Zealand dollar both eked out small gains against the green back in what look to be corrective moves after yesterday’s big U.S. dollar bullish move.
The Japanese yen gained modestly on the greenback, up only about 5 pips on the U.S. dollar 30 minutes before 5pm Eastern time.
Crude oil closed up over 1$ a barrel, past the 80$ a barrel mark which
helped to calm the U.S. dollar rally today. Gold closed modestly lower.
Currency pair in focus: GBP/USD
Our entry parameters posted in the member’s forum for selling yesterday’s fakey setup worked out almost perfectly today.
We are now short this market via our price action entry parameters posted in the member’s commentary yesterday. We are expecting price to move lower over the near term as there is not much support until the 1.5000 region.
Price action setups in trending markets such as this most recent GBPUSD fakey setup are a very high probability way to trade the forex market.
For a more in-depth analysis of the day’s price action setups and forex market commentary, check out my price action trading course.
Daily Forex Market Commentary:
On Wall Street today the DOW closed down just over 100 points as investors responded to a much worse than expected Conference Board consumer confidence index reading. The index fell to 46, down from 56.5 last month; analysts were expecting a drop to only 55.
U.S. consumers are vital to a long term economic recovery; today’s consumer confidence reading highlights the fact that the global recovery has a long way to go before significant progress is made. It is likely to be a choppy ride until we see substantial U.S. job growth and consumer spending.
Currencies:
The currency markets were quite volatile today. Most of the major FX pairs rose against the greenback during the Asian trading session but then reversed sharply into the European open and through the New York closing. Dollar strength roared back in with vengeance as U.S. stocks got hit hard by a disappointing reading of consumer confidence.
Some pretty nice 4 hour and daily price action setups have formed over the last 12-24 hours. We are looking for the U.S. dollar to remain strong the rest of this week and will be looking to get in on the dollar bull train that has been plowing forward as of late.
Currency pair in focus: GBP/USD
The confluence zone discussed in yesterday’s GBPUSD chart proved to be a very strong inflection point today. We can see price penetrated the bottom end of our resistance zone, hitting a high of 1.5574 before selling off sharply and forming a fakey setup.
This fakey setup has formed with the daily trend and we are looking for prices to move lower from here. There are a number of possible entry methods that traders can employ for this fakey. We discuss them in-depth in the member’s market commentary and also in my price action trading course.
For a more in-depth analysis of the day’s price action setups and forex market commentary, check out my forex educational price action course.
Daily Forex Market Commentary:
On Wall Street today stocks were mostly flat, the Dow closed down 18.97 points. The stock market will likely be subdued until Fed Chairmen Bernanke testifies before congress on Wednesday.
Investors are waiting to make any significant decisions until the Fed Chairmen clears up the reasoning behind last week’s surprise discount rate hike of .25%.
Currencies:
The currency markets were pretty tame today. Most of the major FX pairs had very quiet trading sessions, the EURUSD and GBPUSD both had trading ranges under 90 pips today.
U.S. Fed Chairmen Ben Bernanke’s testimony before congress on Wednesday of this week will likely be the next big catalyst for movement in the major forex currency pairs, until that time we are likely to see more sideways consolidation.
Currency pair in focus: GBP/USD
Today we are looking at the daily chart of GBPUSD. An inside bar formed today and there are two possible scenarios we are going to look at for trading off of this inside bar setup.
First, since the overall trend is down this inside bar could break to the downside, resuming the overall down trend. Price action setups taken with the dominant trend usually work the best, inside bar setups are especially great as trend continuation signals.
Alternatively, this inside bar may pop higher and push into the confluence zone as marked on our chart. This confluence zone is a strong area of resistance that was previously support, it also coincides roughly with the Fibonacci 50%-61.8% retracement level, as such, it would be a great area to watch for bearish price action setups to form at.
For a more in-depth analysis of the major forex currency pairs as well as price action education check out my price action trading course.
Daily Forex Market Commentary:
On Wall Street Friday the Dow squeezed out a small gain, closing up 9.45 points from Thursday.
Renewed optimism about economic growth in major markets as well as a reduced sense of nervousness about debt problems in Europe will likely be contributing factors to any stock advances for the upcoming trading week.
U.S. Fed chairmen Ben Bernanke’s speech on interest rates before congress on Wednesday will be a noteworthy economic event as will any news out of Europe regarding the economic problems in Greece.
Currencies:
The euro rallied on Friday and formed a reversal / pin bar closing out at previous resistance near 1.3590. The GBPUSD did close lower on Friday but managed to close 98 pips off its low after a late day rally during the New York trading session.
The U.S. dollar appears to be on course to weaken over the first part of this trading weak. However, given the recent dollar strength we have seen in the currency markets we are taking a neutral view until we see strong signs of trend resumption.
Currency pair in focus: EUR/USD
Today’s feature currency chart is the daily EURUSD. We are looking at a pin bar setup that developed on Friday afternoon. This pin bar setup is counter trend, so it is not as valid as a pin bar setup taken with the dominant down trend of this market.
We generally advise taking price action setups in the direction of the dominant trend. We are going to follow Friday’s counter trend pin bar to see how it plays out but are not recommending it as a setup. The logical resistance area to watch comes in around 1.3780.
For a more in-depth analysis of the major forex currency pairs as well as price action setups see my forex trading educational course.
Daily Forex Market Commentary:
On Wall Street today the Dow gained 84 points on the back of a regional increase in manufacturing which worked to offset concerns about lower sales from Wal-Mart.
However, stock futures turned lower after the bell today as the Federal Reserve announced a surprise hike in the interest rate it charges banks for emergency loans.
Higher interest rates generally strengthen the U.S. dollar while weakening the stock market due to decreasing demand for commodities.
Currencies:
The EURUSD moved lower today and broke through support at 1.3580 today as a late day announcement of a surprise discount rate hike by the U.S. Federal Reserve Bank caused an intense strengthening of the U.S. dollar.
The dollar strengthened across the board on the back of this news.
We see dollar strength remaining into the end of the trading week and likely into next week.
Currency pair in focus: USD/CAD
Today’s feature currency pair analysis is on the USDCAD. Yesterday we reported on an inside bar setup that had formed just above support at 1.0400. Today we saw briefly break 1.0400 but then quickly got bought back higher by the bulls resulting in a false break of a significant support level. This is an example of inside bar price action setup that turned into a fakey setup.
We will continue following this setup into our target of 1.0640. The fakey setup and inside bar setup are explained in depth in my price action trading course.
For a more in-depth analysis of the major forex currency pairs as well as price action setups see my forex trading course.
Daily Forex Market Commentary:
On Wall Street today positive corporate and economic reports provided another catalyst to push stocks higher.
The continued stream of uplifting economic reports is adding hope that an economic recovery is taking hold, even though unemployment and concerns over sovereign debt in nations like Greece are still widespread.
Industrial production rose 0.9% percent over last month, 0.2% better than analysts expected.
Currencies:
The Euro erased practically all of its gains from yesterday as technical chart levels in the forex market dominated trading today.
The U.S. dollar was higher across the board today and Gold prices fell, Crude Oil was up about .32 cents a barrel.
We see dollar strength regaining its foot hold in the near term. The Japanese Yen looks poised to strengthen over the coming trading sessions as well, except for possibly against the U.S. dollar.
Currency pair in focus: USD/CAD
Today’s feature currency pair is the USDCAD. We are watching the inside bar price action setup that formed today. It has formed just above a very strong support level and we are watching for it to bounce up into the next resistance zone.
Price action setups like the inside bar are best played from confluent levels of support and resistance. My price action trading course goes into extensive detail about how to trade the inside bar and other price action setups.
For a more in-depth analysis of the major forex currency pairs as well as price action setups see my forex educational course.
Daily Forex Market Commentary:
On Wall Street today markets moved higher with the Dow gaining 169.67 points as global stocks rebounded as investors bought back into riskier assets on improved economic data out of Britain and the U.S.
Barclay’s Bank out of Britain reported a near doubling of profits last year and strong U.S. factory data helped fuel today’s rally in stocks.
Currencies:
The Euro posted its biggest single day gain against the U.S. dollar since June of 2009 as traders bet that the euro-zone currency had fallen too far on recent concerns over Greece’s debt problems.
Else where, all the other major currencies gained big on the green back today except the Japanese Yen.
Commodity prices were up as well as dollar weakness was the theme for the day.
Currency pair in focus: EUR/USD
Yesterday’s inside bar setup on EURUSD popped higher today and provided a nice counter-trend trade.
We can see a pin bar occurred at 1 and there was a “false break” of the 1.3580 level which indicated this was solid support.
Yesterday an inside bar formed at point 2 just above this level that provided the price action setup to enter this trade. Point 3 shows the pop higher that occurred as a result of this setup. Counter trend trading is not recommending for beginning forex traders but after you learn to trade with price action you will be able to decipher quality counter trend trades from inferior counter trend price action setups.
For a more in-depth analysis of the major forex currency pairs as well as price action setups see my price action trading course.
Daily Forex Market Commentary:
On Wall Street today markets were closed due to the President’s Day bank holiday.
Stocks will likely have trouble making any decent gains the rest of this week if European finance ministers cannot reassure world markets that they can contain Greece’s debt problems.
The fear is that Greece’s problems could spread to other countries as cash-strapped governments around the world continue to try and spend their way out of the recession which is causing a mountain of public debt.
Currencies:
The U.S. dollar saw very little movement today in the major currency pairs as the bank holiday in the U.S. limited FX market movement.
The dollar did manage to push out small gains against the Euro, Pound, and Swiss Franc while losing slightly to the Yen, Aussie dollar, Cad. Dollar, and New Zealand dollar.
Currency pair in focus: GBP/USD
Today’s feature currency pair is the GBPUSD. Specifically we are analyzing the inside bar that formed today and the possible scenarios that may unfold over the coming trading days.
We can see a strong resistance zone between 1.5750-1.5850. It is possible that price may break up from the inside bar setup that formed today and re-test this resistance resulting in a fakey setup. It may just re-test the resistance without resulting in a fakey as well.
Alternatively, price may just break down from the low of today’s inside bar near 1.5610 and resume the downward price movement. Inside bar price action setups usually give rise to a great trend continuation move either through a fakey price action setup or from a break out in the direction of the trend.
For a more in-depth analysis of the major forex currency pairs as well as price action setups take my forex price action educational trading course.
Daily Forex Market Commentary:
On Wall Street today the Dow closed down 45 points but was down as much as 160 points earlier in the session.
News that China may take further steps to keep its economic expansion from getting out of hand provided the negative catalyst for today’s selling. Stocks for businesses with extensive overseas activity took the biggest hit today with Alcoa, Boeing and General Electric all falling more than 1%
Currencies:
The U.S. dollar gained modestly on the major currencies today as whip saw trading conditions dominated the forex market.
The U.S. dollar rose significantly during the European session but gave up the majority of it’s gains to the majors during the New York session closing only slightly higher against most currencies.
Crude oil closed down$1.15 a barrel and Gold closed down modestly from Thursday.
Currency pair in focus: EUR/JPY
Today’s feature chart is the EURJPY currency pair. We are looking at the pin bar that formed on Friday as a possible catalyst for a correction to the upside over the next few trading days.
This is a riskier trade because it is counter-trend, we generally advise traders to trade only with the trend when learning to trade forex, as such the safer alternative in today’s currency pair in focus is to wait for a move higher into resistance and sell from a bearish price action setup.
The two resistance zones we are watching come in at 124.40 and then between 126.00-127.00 respectively. Support and resistance levels are important to watch because they add confluence to our price action signals.
For a more in-depth analysis of the major forex currency pairs and price action setups check out my Forex Educational Course.
