Trading Setups / Chart in Focus:
USDJPY – Dollar/yen surges higher
The USDJPY surged higher today and we can see that price has now moved significantly higher following the 1 hour pin bar buy signal that we discussed back in our October 15th commentary.
Anyone who held that trade would be up a very nice profit now. Also, as we discussed in our members market commentary on Tuesday of this week, another bullish pin bar buy signal formed that day, which provided another entry into this recent up move for anyone who missed the signal from the 15th. The trend is obviously still up in this market and we will continue watching for price action buy signals on any retraces back to support in the coming days.
NZDUSD – Kiwi/dollar moves lower following pin bar sell signal
The NZDUSD fell lower again today from the pin bar sell signal we discussed in our October 21st members commentary and in our members’ discussion forum that day. Price could test the recent lows near 0.7710 area in the coming days if this bearish momentum continues.
AUDUSD – Aussie/dollar threatens to fall lower
The AUDUSD formed an inside bar today and lost slight ground in the process as price consolidated within yesterday’s range. Note the fakey / pin bar combo sell signal we discussed in our October 21st commentary is still valid and we still see the potential for another leg to the downside in the coming days.
Latest Trading Lessons
In the currency markets today, the U.S. dollar gained ground following strong U.S. manufacturing data.
The greenback gained nearly 1 percent on the Japanese yen, to 108.17 yen.
The New Zealand dollar lost 1.24 percent to $0.7828 following weaker-than-expected inflation data that could give the RBNZ a reason to further delay its next interest rate hike.
In the U.S. markets today, stocks gained more than 1% as U.S. corporate earnings continued to come in better than expected, while stronger American economic reports also helped support the market.
The Dow added 216.58 points or 1.32%, the S&P 500 gained 23.71 points or 1.23%, and the Nasdaq added 69.95 points or 1.60%.
Upcoming important economic announcements (New York time): 10/24/2014
4:30am EST: Britain – Prelim GDP q/q
10:00am EST: United States – New Home Sales