Forex Trading Commentary
Daily Forex Trading Commentary, Price Action Trade Setups & Signals by Nial Fuller
Trading Setups / Chart in Focus:
AUDUSD – Aussie/dollar moves into key near-term resistance
The AUDUSD moved up into key near-term resistance at 0.9374 today, as we discussed as a potential in this week’s weekly price action outlook. Advanced price action traders may have entered short on a ‘blind sell entry’ near 0.9374. We are seeing an important containment area really from 0.9374 to about 0.9400, and as long as the market stays below that area on a closing basis, we could see prices move lower in the coming days.
Gold – Spot Gold moves higher but pares gains again
The spot Gold market continued higher today, moving up to a high of $1296 before backing off those highs into the close. As we discussed in our members trade setups forum yesterday, we wanted to give the pin bar sell signal from yesterday a bit of a wider stop. Following today’s bearish tailed bar and yesterday’s bearish pin bar, this market is still looking like it wants to fall; near-term momentum is still bearish. If price weakens from here and takes out the lows near $1270 in the coming days, we could see a larger move lower. However, should price continue retracing higher, we will still look to be sellers, but perhaps from a little further up should another price action sell signal form.
Latest Trading Lessons
In the currency markets today, the U.S. dollar got a slight boost from stronger-than-expected U.S. economic data and an increase in tensions in the Ukraine crisis which worked to weigh on the already weak euro.
Safe-haven currencies like the Japanese yen and Swiss franc rose today. The greenback was down about 0.1 percent against the yen and was basically flat against the Swiss franc.
In the U.S. markets today, stocks fell lower following the latest flare-up in tensions between Ukraine and Russian forces.
The Dow lost 42.44 points or 0.25 percent, the S&P 500 lost 3.32 points or 0.17 percent, and the Nasdaq lost 11.93 points or 0.26 percent..
Upcoming important economic announcements (New York time): 8/28/2014
9:00pm EST: New Zealand – ANZ Business Confidence
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9:45am EST: United States – Chicago PMI