Trading Setups / Chart in Focus:

EURUSD

The EURUSD closed today basically unchanged and showed rejection of lower prices into the New York close as a bullish pin bar formed. We are currently only interested in the downside though, so we will watch any rallies into resistance closely for intra-day or daily sell-signals in order to rejoin the downward momentum. Resistance comes in from about the 8 day EMA to the 21 day EMA, any obvious bearish price action forming within this zone could be a good shorting opportunity.

GBPUSD

The GBPUSD closed today right on the support through 1.5775. A break below this core support level could see a deeper move to the downside. Alternatively, should price rotate higher from this support will watch resistance between the 8 and 21 day EMAs for price action sell-signals to re-join the downward momentum.

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Forex Commentary:

The U.S. dollar, boosted on Monday by a flight to safety as investors fled European stocks and the euro, eased back on hopes Europe’s top powers will supply fresh support for Greece. Global stocks and the euro rallied even as investors remained worried European policymakers had no plan to stem the region’s debt crisis.

The euro hit a seven-month low against the U.S. dollar on Monday and a ten-year low against the yen. German officials had suggested that a Greek bankruptcy might be the solution to Europe’s problems.

In other trading, the British pound fell to $1.5776 from $1.5859 late Monday. The Australian dollar fell to $1.0309 from $1.0343. The greenback lost significant ground to the Canadian dollar as early day gains gave way to a mid-day sell off of dollars vs. the CAD.

Other Markets:

On Wall Street today, stocks gained as investors bought up stocks that have been beaten down in recent weeks and expected European leaders to take action soon to ease the Greek debt crisis.

The Dow was up 44.73 points, or 0.40 percent, the S&P 500 added 10.60 points, or 0.91 percent, and the Nasdaq gained 37.06 points, or 1.49 percent.

Commodities were mixed. Brent crude prices slipped, dragged down by a downward revision to the International Energy Agency’s forecast for growth in global oil consumption due to the struggling economy.

Gold prices rose nearly 1 percent on the higher equity markets and euro rebound.

Upcoming important economic announcements: 9/14/2011

2:30am EST: Britain – BOE Gov King Speaks
4:30am EST: Britain – Claimant Count Change
8:30am EST: United States – Core Retail Sales m/m
8:30am EST: United States – PPI m/m
8:30am EST: United States – Retail Sales m/m
5:00pm EST: New Zealand – Official Cash Rate
5:00pm EST: New Zealand – RBNZ Press Conference
5:00pm EST: New Zealand – RBNZ Rate Statement