Daily Forex Market Commentary:

On Wall Street today stocks closed lower with the Dow closing down 0.5 percent, the S&P down 0.2 percent and the Nasdaq down 0.1 percent. Further problems with the debt situation in Greece and rising unemployment in the U.S. were the main causes for the negative movement in equities.

The number of new unemployment claims in the U.S. rose by 22,000 over last week after analysts were expecting a decrease. Also, a disappointing U.S. Core Durable Goods Orders report added to worries about the strength of the economic recovery.

Dept problems in some European countries took the stage again today as rating agencies said they might downgrade Greece’s sovereign debt rating. A downgrade could increase Greece’s borrowing costs as well exacerbate its debt problems.

Currencies:

The currency markets were quite volatile today. The British pound was the big mover, the markets saw the GBPUSD pair close 144 pips lower as the fakey setup highlighted in our last 2 commentaries came off quite nicely. The euro seemed to gain strength today with the EURGBP shooting up and the EURUSD closing up about 9 pips.

The Japanese yen strengthened against all the major currencies as risk aversion dominated today’s world markets. The U.S. dollar was the other big winner today, rising against most of the majors except for a small loss to the euro and Swiss franc and a loss to the Japanese Yen as well.

Currency pair in focus: GBP/USD

The fakey setup that we have been following this week in GBPUSD has worked out quite nicely for our member’s and made most of them some very decent profits. The entry parameters for this price action setup were posted in our member’s forum before the trade unfolded. We analyze the major pairs each day for price action setups including my proprietary fakey setup.

The fakey setup is not taught anywhere else on the internet. The way that I instruct my member’s to trade it is a completely proprietary method and centers around the fundamental fact that the forex market is designed to be contrarian and thus causes many novice traders much pain and suffering.

My price action trading course will teach you how to harness the power of contrarian trading centered around my time tested and highly profitable price action setups that exploit the volatility and contrarian nature of the forex currency market. The power of my forex educational course combined with daily price action analysis is the best way to learn to successfully trade the forex market with minimal stress and confusion.

For a more in-depth analysis of the day’s price action setups and forex market commentary, check out my price action forex trading course.