Forex Trade Setups Commentary: EURUSD and AUDUSD pin bar setups, 21st December 2011

Trading Setups / Chart in Focus:

EURUSD

The EURUSD formed a bearish pin bar in the dynamic 8 / 21 EMA resistance layer today. This pin bar is also showing rejection of the horizontal level through 1.3200, and it’s with the downtrend, so it’s a confluent setup. Support comes in near 1.2950 – 1.2900, and we could see a larger move lower if this level breaks.

AUDUSD

The AUDUSD formed a large bearish pin bar rejection candle today, showing rejection of the near-term resistance through 1.0200 area. We could see a resumption of negative momentum if price can stay contained underneath the high of today’s pin bar.

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Forex Commentary:

In the currency markets today, the EURUSD closed lower and rejected an intra-day push higher on the back of more negative news on the euro-zone debt crisis.

The GBPUSD and AUDUSD formed large and obvious bearish pin bar rejection setups today, showing obvious signs of a strong intra-day reversal and the potential for negative momentum to resume.

The greenback was higher against the Japanese yen today, buying 78.07 yen, up from 77.88 on Tuesday.

Other Markets:

In the U.S. markets today, the Nasdaq lost about 1 percent as technology shares fell lower. The Dow and S&P 500 gained modestly as concerns about the European debt crisis faded.

The Dow gained 4.16 points, or 0.03 percent, the S&P 500 added 2.42 points, or 0.19 percent, and the Nasdaq lost 25.76 points, or 0.99 percent.

Upcoming important economic announcements: 12/22/2011

4:30am EST: Britain – Current Account
8:30am EST: United States – Unemployment Claims