Forex Trade Setups Commentary: AUDUSD makes new high, EURUSD support, 28th March 2011

Forex Commentary:

The Australian dollar jumped on Monday to its highest level versus the greenback since the Aussie was allowed to float freely in 1983.

The Australian currency (AUDUSD) rose to buy $1.0278, after pushing as high as $1.0314 during Asian trading hours, according to FactSet Research data. That intraday peak marked its highest level against the U.S. unit since the Aussie was allowed to float freely in 1983.

The dollar fell against the euro Monday after a speech by European Central Bank President Jean-Claude Trichet indicated to investors that higher interest rates are likely in Europe. The U.S. currency was mixed in other trading.

Trading Setups / Chart in Focus:

AUDUSD

The AUDUSD made a new high today but could not sustain a close above resistance at 1.0255 and formed a bearish pin bar strategy, indicating we may see a rotation down back to value before the uptrend resumes.

We could see a move into the dynamic support near the 8 and 21 day EMAs before price continues moving higher, traders should watch this support for potential long setups.

EURUSD:

The EURUSD bounced modestly off support near 1.4030 today, price could continue higher from here or we may see a deeper rotation into the support zone near the 21 day EMA, in which case we would watch closely for potential bullish price action.

For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my price action forex trading course.

Other Markets:

On Wall Street today U.S. stocks dropped as the corporate outlook was unclear ahead of earnings and uncertainty continued to remain the theme from overseas, volume was it its lowest level of the year.

The Dow lost 22.71 points, or 0.19 percent, the S&P 500 dropped 3.61 points, or 0.27 percent, and the Nasdaq fell 12.38 points, or 0.45 percent.

Upcoming important economic announcements: 3/29/11

4:30am EST: Britain – Current Account
10:00am EST: United States – CB Consumer Confidence