Forex Commentary: EURUSD and AUDUSD continue to lose ground, 13th December 2011

Trading Setups / Chart in Focus:

EURUSD

The EURUSD lost significant ground today as it crashed through support near 1.3150 like a hot knife through butter. The market is obviously bearish but is a bit extended here. We would look to sell up near the break down level of 1.3150 if price rotates higher and forms any bearish price action signals. The next main support can be seen on the weekly chart near 1.2900.

AUDUSD

The AUDUSD is beginning to look increasingly bearish as we can see price rejected the intra-day push higher today and the 8 / 21 day EMA’s are now crossed lower. We see the potential for a re-test of support near 0.9700 and a gap fill if price continues its downward track. Look to sell from resistance on rotations higher, pending price action confirmation.

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Forex Commentary:

In the currency markets today, the euro dropped to an 11-month low against the U.S. dollar as the debt crisis in Europe continues to plague global markets.

The EURUSD sliced through support near $1.3150 and closed the day at $1.3034, down from $1.3186 yesterday.

In other Forex trading, the GBPUSD dropped to $1.5487 from $1.5582, the AUDUSD fell to $1.0012 from $1.0075, and the USDJPY was up to 77.98 from 77.88.

Other Markets:

In the U.S. markets today, stocks fell for the second day in a row after the Federal Reserve did not mention any new stimulus efforts to help ease the effects of the growing debt crisis in Europe.

The Dow dropped 66.45 points, or 0.55 percent, the S&P 500 lost 10.74 points, or 0.87 percent, and the Nasdaq lost 32.99 points, or 1.26 percent.

Upcoming important economic announcements: 12/14/2011

4:30am EST: Britain – Claimant Count Change
9:30pm EST: China – HSBC Flash Manufacturing PMI