Trading Setups / Chart in Focus:

EURUSD

The EURUSD moved lower today after a large 4hr bearish pin bar formed. We can see price rejected the 21 day EMA before moving lower today. We see the potential for a re-test of 1.3150 support in the near-term .

GBPUSD

The GBPUSD created a large false-break of resistance near 1.5700 today, the 1hrt chart fired off a very obvious 1hr long-tailed pin bar just prior to the large move lower today. In times of volatility like this we can watch the 4hr and 1hr charts more closely to get good entries as price action tends to be more pronounced and obvious during volatile markets and especially around core market levels like the 1.5700 resistance in GBPUSD. We see near-term support around 1.5575 and then at 1.5420 and longer-term support at 1.5300 area.

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Forex Commentary:

In the currency markets today, the euro lost ground after the European Central Bank made comments that sounded negative on the possibility of helping out more to support the eurozone bond market.

Both commodity and emerging-market currencies sold-off heavily into the New York close after European Union leaders gathered in Brussels for a summit on the euro-zone’s future.

The U.S. dollar gained across the board as risk-aversion returned to global markets following a disappointing meeting of euro-zone officials.

Other Markets:

In the U.S. markets today, stocks ended lower after the European Central Bank thwarted hopes for more involvement in helping to support debt-stricken euro-zone nations.

Based on the latest available data, the Dow was down by 160 points, or 1.3%, the S&P 500 lost 21 points, or 1.6%, and the Nasdaq lost 37 points, or 1.4%.

Upcoming important economic announcements: 12/9/2011

All Day: Euro-zone – EU Economic Summit
4:30am EST: Britain – PPI Input m/m
8:30am EST: Canada – Trade Balance
8:30am EST: United States – Trade Balance
9:55am EST: United States – Prelim UoM Consumer Sentiment
Tentative: China – Trade Balance