Trading Setups / Chart in Focus:

EURUSD

The EURUSD moved lower today off the inside bar setup we discussed last Friday. Price did close up off its lows today to form a counter-trend pin bar however. While we are still bearish on this market but we do see the possibility of a small up-side pop to potentially fill the opening week gap and. Resistance is seen near 1.3900 and traders could look to sell there pending bearish price action confirmation

GBPUSD

The Sterling / Dollar formed a counter-trend pin bar today. This market is clearly very bearish still, but the potential for a small up-side move remains after today’s pin bar. Watch the near-term resistance around the 8 day EMA for potential price action sell setups to re-join the downtrend.

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Forex Commentary:

The euro trimmed losses against the U.S. dollar on Monday in choppy trading, as Greece said it is close to a deal with the International Monetary Fund, European Union and European Central Bank.

The euro cut early losses against the U.S. dollar to close around $1.3690, up from a low of 1.3585, but still down 0.8 percent on the day.

The U.S. dollar rose 0.7 percent against the Swiss franc to 0.8814 francs and rose 1.2 percent against the Canadian dollar to C$0.9994.The GBPUSD fell to about 1.5700 GBP.

Against the yen, the euro fell 1.2 percent to 104.68 yen EURJPY, and the dollar fell 0.3 percent to 76.52 yen, not far from its record low of 75.94 set last month.

Other Markets:

On Wall Street today U.S. stocks closed lower but ended the day well off their lows in a late-day rally after fears of Greek debt default subsided on the back of news on a possible deal over bailout funds.

The Dow lost 108 points today, or 0.9%, the S&P 500 lost 11.9 points, or 1%, and the Nasdaq lost 9.5 points, or 0.4%

Crude oil futures lost nearly 3%, closing at $85.70 a barrel and causing losses in the energy sector today.

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5:00am EST: Euro-zone – German ZEW Economic Sentiment
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6:45pm EST: New Zealand – Current Account