Daily Forex Market Commentary:

On Wall Street today stocks traded mixed with the Dow closing down 13.68 or 0.1 percent, the S&P 500 closed down 0.20 point or less than 0.1 percent, and the Nasdaq closed up 5.86 points or 0.3 percent.

Cisco Systems and Blackberry maker Research in Motion led the push higher in the Nasdaq composite index which closed out at 2,332.21, its highest close since September 2008.

Few economic reports for the first half of this trading week mean traders will be looking for other cues to market direction.

Economic news releases will begin to pick up starting on Wednesday and running through the end of the week as the market will see reports on wholesale and business inventories, trade balance, unemployment claims, retail sales and consumer sentiment among others.

Currencies:

The currency markets took a cue from stocks today and remained relatively quiet.

The U.S. dollar rose against the British pound but remained essentially unchanged against the Euro and Swiss Franc.

The Australian dollar, Canadian dollar, New Zealand dollar, and Japanese yen all gained modestly on the greenback. Gold fell.

Currency pair in focus: EUR/JPY

Today’s currency pair in focus is the EURJPY. We don’t usually use trend lines here at LTTTM as we feel they are too subjective overall. However, sometimes you get a rather obvious one that does a good job at pointing out a channeling market, such as the current conditions in EURJPY.

We can see a small pin bar setup has formed off the top of this descending channel. We like this price action setup because it is signaling a resumption of the dominant trend and generally pin bars from key levels like this one are the most profitable.

There were a few more very solid price action setups that occurred in other pairs today, check out our member’s forum for more chart analysis and price action commentary.

For a more in-depth analysis of the major FX pairs as well as market commentary, please check out my forex trading course.