Trading Setups / Chart in Focus:
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AUDUSD – Aussie/dollar fakey sell signal
The AUDUSD reversed early-session gains today to form a fakey pin bar combo sell signal just under resistance near 0.8835 – 0.8900. We could see price fall from this signal and the downtrend continue to test the recent lows down near 0.8650 area and possibly below if bearish momentum continues.
EURUSD – Euro/dollar likely to keep falling following failure at resistance
The EURUSD fell significantly lower today after price tried to rally higher early in the session but quickly reversed those gains just below 1.2855 resistance. We could see the market continue falling in the coming days as it’s looking like this recent upward retrace has stalled / failed here below that 1.2855 resistance level. If price continues to weaken, we could see it re-test support down near 1.2500 in the coming days.
Latest Trading Lessons
In the currency markets today, the U.S. dollar index which tracks the greenback against a basket of six other major currencies, was up 0.32 percent.
The euro fell significantly lower against the U.S. dollar today after a report surfaced that the European Central Bank was looking at buying corporate bonds as soon as December in efforts to try and revive the stagnating euro-zone economy.
In the U.S. markets today, stocks moved higher as technology earnings lifted U.S. shares and existing home sales rose 2.4 percent in September, their highest level in a year.
The Dow added 215.14 points or 1.31%, the S&P 500 gained 37.27 points or 1.96%, and the Nasdaq added 103.40 points or 2.40%.
Upcoming important economic announcements (New York time): 10/21/2014
8:30pm EST: Australia – CPI q/q
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8:30am EST: United States – CPI m/m
8:30am EST: United States – Core CPI m/m
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11:15am EST: Canada – BOC Press Conference
3:30pm EST: Canada – BOC Gov Poloz Speaks
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5:45pm EST: New Zealand – CPI q/q
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