Trading Setups / Chart in Focus:

EURUSD

The EURUSD stalled today at the dynamic resistance of the 8 and 21 day EMAs, this level also coincides with an approximate 50% retrace of the last down move. We could see a rotation lower from current levels, support comes in down near 1.4100 – 1.4000.

Unfortunately we did not get any obvious bearish price action trading setups from today’s resistance, but it is worth noting that price has stalled at this confluent level.

GBPUSD

The GBPUSD fell dramatically lower today after pushing up to just below the 21 day EMA dynamic resistance level. Yesterday we discussed 1.6300 as potential resistance, price rallied to about 1.6260 today before forming a bearish pin bar on the 1hr chart and falling substantially. Some of our member’s caught the 1hr pin bar even though it formed at 2a.m. New York time(not pictured here).

For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my Forex trading course.

Forex Commentary:

The dollar rose against the euro for the first time in five days on Wednesday after the Federal Reserve gave no hint of providing further economic stimulus, though it held on to its position of keeping interest rates low for an extended period.

The Fed said the pace of the U.S. economic recovery was proceeding more slowly than it had expected, but said growth should pick up soon.

Against the yen, the euro was down 0.3 percent at 115.28 yen EURJPY. The euro was 0.4 percent weaker against the Swiss franc to 1.2056 francs EURCHF.

The dollar was 0.1 percent higher against the yen to 80.300 yen JPY=. The dollar index .DXY, which tracks the greenback’s performance against a basket of major currencies, was up 0.4 percent at 74.834, but fell off last week’s peak of 76.015.

Other Markets:

On Wall Street today stocks lost ground as the Federal Reserve cut its forecasts for U.S. economic growth this year and next, and did not hint at future plans for stimulus.

The Dow lost 80.34 points, or 0.66 percent, the S&P 500 dropped 8.38 points, or 0.65 percent, and the Nasdaq lost 18.07 points, or 0.67 percent.

Upcoming important economic announcements: 6/23/2011

8:30am EST: United States – Unemployment Claims
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