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Daily Forex Market Commentary:
Stocks rose on Wall Street today but the advance lost steam into the close, the Dow closed up only .02%, the S&P was up 0.23%, and the Nasdaq closed up 0.32%.
U.S. stocks have risen 8 days out of the past 11 and many market analysts are saying the recent rally is overbought and do for a correction.
Currencies:
The currency markets showed further signs today that recent U.S. dollar strength may be coming to an end, at least temporarily.
The euro and Swiss franc both closed higher against the greenback today as the EURUSD briefly tested 1.3450 support but then got bid higher rather aggressively off this level and USDCHF briefly broke resistance at 1.0875 before getting pushed lower by the bears.
The pound managed to hold ground against the U.S. dollar after it’s hammering by the greenback on Monday and ended the New York session nearly unchanged. Else where, the U.S. dollar lost modest ground to the Australian dollar, gained slightly on the New Zealand dollar, and lost ground to the Canadian dollar and Japanese yen.
Currency pair in focus: EUR/USD
The EURUSD formed another bullish pin bar setup today after what was a rather volatile forex trading session. You can see in the chart below the rectangle is highlighting the lower shadows of 4 pin bar candlestick patterns that have formed off of 1.3450 support in this market over recent trading days.
These types of price action setups off of support areas during downtrends are indicative of possible counter trend momentum building. There is likely to be correction from here at least up to resistance near 1.3800 before the downtrend resumes.
For a more in-depth analysis of the day’s price action setups as well as forex market commentary, please check out my price action trading course.
Thomas said,
March 3, 2010 @ 9:23 pmHi Nial,
thank you for posting your daily commentary…