Forex Trade Setups Commentary: AUDUSD fakey with pin bar, 3rd November 2011

Trading Setups / Chart in Focus:

AUDUSD

The AUDUSD broke lower today from yesterday’s inside bar setup but it quickly got pushed higher as buyers came in below the 21 day EMA dynamic support level. We can see price formed a bullish fakey with pin bar trading strategy off the 21 day EMA. We see the potential for a move higher from today’s price action with core resistance coming in near 1.0750. Alternatively, if price heads lower, a close below the 21 day EMA support would be a bearish event.

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Forex Commentary:

In the currency markets today, the EURUSD moved higher as did the EURJPY in what was a volatile trading session. Optimism over the euro-zone debt crisis caused the buoyancy in the euro today.

Also, the European Central Bank surprisingly lowered interested rates to 1.25 percent today which worked to inject more confidence into the market.

The U.S. dollar was lower against all the other majors today after giving back early-session gains into the New York close.

Other Markets:

In the U.S. markets today, stocks moved higher for another day on the back of positive news out of the euro-zone regarding the region’s debt crisis.

The euro-zone debt crisis has kept investors nervous for month now, the worry is that if Greece defaults it could trigger a larger financial crisis moving outside of Europe.

The Dow added 208.43 points, or 1.76 percent, the S&P 500 added 23.25 points, or 1.88 percent, and the Nasdaq gained 57.99 points, or 2.20 percent.

Upcoming important economic announcements: 11/4/2011

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