Trading Setups / Chart in Focus:

EURUSD

The EURUSD has been consolidating sideways for about 10 days now. Despite all of the negativity surrounding the euro-zone debt crisis there have been some positive signals from European leaders that they are willing to work on stemming the region’s debt problems. This combination of conflicting information has led to some serious chop and volatility in the euro and some of the other majors this week.

In the charts below we can see the daily EURUSD chart showing the seriousness of the recent two weeks of sideways chop. We are sitting on our hands on the daily chart until price breaks out of this recent consolidation.

There have been some good opportunities recently on the 4hr chart in the EURUSD and some of the other majors though. Note on the 4hr EURUSD chart below we can see some pin bars that have worked and some that have failed.

AUDUSD

The AUDUSD formed an excellent counter-trend pin bar strategy and false-break of 1.0330 resistance during Thursday’s trading session. Price then sold off hard into Friday’s session but ended Friday up well off the lows in what was a volatile trading day. We can see that during times of Forex market volatility there is money to be made on the intra-day charts for savvy price action traders.

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Forex Commentary:

In the currency markets today, the EURUSD moved modestly higher in choppy trading. The euro was buoyant today on the back of news that European Union countries were open to signing a treaty that would save the single currency and help to prevent another debt crisis.

The U.S. dollar was mainly lower against the majors today, the GBPUSD moved to $1.5661 from $1.5626, the USDJPY dropped to 77.61 from 77.66, and the AUDUSD moved to $1.0213 from $1.0163.

Other Markets:

In the U.S. markets today, stocks moved higher and closed the week higher as leaders in the euro-zone came to a fiscal agreement to help return confidence to the markets to help the region recover from its sovereign debt crisis.

The Dow gained 186.56 points, or 1.55 percent, the S&P 500 added 20.84 points, or 1.69 percent, and the Nasdaq gained 50.47 points, or 1.94 percent.

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