Daily Forex Market Commentary 25 – 11 – 09

Posted on November 26th, 2009

Daily Forex Market Commentary:

Stocks rose on Wall Street today in light volume ahead of the Thanksgiving holiday. Investors bought stocks as the biggest drop in unemployment claims all year and increase in new home sales added fuel to the economic recovery.

NEW YORK (AP) — The safe-haven dollar slid to a 15-month low against the euro, was within striking distance of 14-year lows versus the yen and dipped below parity against the Swiss franc Wednesday as markets absorbed the Federal Reserve’s indication that interest rates will remain at super-low levels for a while and it was not overly concerned by the U.S. currency’s decline.

Pair in focus: euro/dollar

As stated above the dollar hit a 15-month low against the euro today as the currency pair currently sits at 1.5141 U.S. dollar per euro. As we pointed out in yesterday’s commentary this pair was getting ready to move. Our member’s received in-depth price action analysis of this trade and others that are all well in the money right now. By simple price action analysis we were able to catch a great break out trade.

We can see below in this daily EUR/USD chart that Tuesday’s inside/pin bar broke up for a substantial gain. Yesterday’s our paid members commentary featured a 4hr chart view of this setup before it broke out with an obviously well defined pin bar. Support now sits in the low 1.5000′s area of the chart.