Forex Trade Setups Commentary: AUDUSD inside bar, Gold pin bar, 2nd November 2011

Trading Setups / Chart in Focus:

AUDUSD

The AUDUSD formed an inside pin bar today as price rejected higher prices intra-day. Should the mother bar low break of today’s inside bar setup we could see a larger move to the downside. Keep in mind there is near-term support near 1.0150 area, below that support comes in near 1.0000.

Gold

Gold pushed higher today from the pin bar trading strategy that we discussed in yesterday’s members’ commentary. We can see that this pin bar rejected support near $1700.00 and the 8 / 21 day EMAs before moving higher, a very confluent and obvious setup. Not much significant resistance until around $1800.00 and then the all-time highs near $1920.00.

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Forex Commentary:

In the currency markets today, the euro gained about 45 pips on the back of gains in the U.S. equity market. However, the dollar pared some of its losses against the euro into the NY close.

The AUDUSD closed today up modestly but well off the day’s highs as it formed an inside pin bar into the NY close.

The GBPUSD closed today basically unchanged after rejecting intra-day highs. The U.S. dollar was down modestly against the yen today.

Other Markets:

In the U.S. markets today, stocks moved higher after two days off losses. The move came after the Federal Reserve stated that it will help the economy if necessary, this worked to offset the negative vibe from the euro-zone debt crisis.

The Dow added 178.08 points, or 1.53 percent, the S&P 500 gained 19.62 points, or 1.61 percent, and the Nasdaq gained 33.02 points, or 1.27 percent.

Upcoming important economic announcements: 11/3/2011

5:30am EST: Britain – Services PMI
8:30am EST: United States – Unemployment Claims
8:45am EST: Euro-zone – Minimum Bid Rate
9:30am EST: Euro-zone – ECB Press Conference
10:00am EST: United States – ISM Non-Manufacturing PMI
8:30pm EST: Australia – RBA Monetary Policy Statement