Trading Setups / Chart in Focus:

EURUSD

The EURUSD triggered a fakey strategy today as price moved lower through the inside bar low from Tuesday. Price has stalled and now shown weakness at the top of the recent trading range resistance near 1.4500, we could see a move lower towards the bottom of the trading range support near 1.4050-1.4000 if price stays contained below 1.4500

AUDUSD

The AUDUSD fell significantly lower today as the resistance near 1.0600 that we’ve been discussing recently held strong. We did not get the obvious price action confirmation on the daily chart that we hoped for, but price did respect this resistance level and it now looks like the downtrend is picking up steam again. Traders could watch for intraday bearish PA setups on rotations higher in order to re-join the downtrend.

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Forex Commentary:

The U.S. dollar and Japanese yen rose broadly on Thursday as investors stampeded into safe-haven currencies on signs of a weakening U.S. economy and concerns over European banks’ exposure to euro zone debt.

A deluge of dismal U.S. economic data and euro zone fears rattled financial markets, with global stock markets tumbling while spot gold prices and Treasury bonds rallied on fears the United States economy may slide back into recession.

In late afternoon New York trade, the euro was down 0.6 percent at $1.4338

Against the yen, the dollar was flat at 76.58 yen, not far from its record low of 76.25 yen struck in March of this year.

Other Markets:

On Wall Street today U.S. stocks got hammered on the back of escalating fears of another recession, sending major indexes significantly lower as the extreme moves returned that investors experienced a week ago.

New worries about the health of European banks set the tone before the market’s open, and a dismal report on regional U.S. manufacturing fueled a downward spiral in which the Dow dropped as much as 528 points, spurring a flight to safe-haven assets like gold.

The Dow lost 419.63 points, or 3.68 percent, The S&P 500 lost 53.24 points, or 4.46 percent, and the Nasdaq lost 131.05 points, or 5.22 percent.

Upcoming important economic announcements: 8 /19/2011

4:30am EST: Britain – Public Sector Net Borrowing
7:00am EST: Canada – Core CPI m/m