Forex Commentary: EURUSD and GBPUSD rotate higher, 20th December 2011

Trading Setups / Chart in Focus:

EURUSD

The EURUSD rotated higher today, closing the day at the 8 day EMA resistance level. If price continues to push higher we will watch the dynamic resistance layer between the 8 and 21 day EMAs for price action sell signals to re-join the downtrend.

GBPUSD

The GBPUSD pushed significantly higher today and closed back above the 21 day EMA resistance level. We are currently waiting to see what develops in this market, if price moves up to resistance near 1.5750 area we would watch for daily price action sell signals, but right now there is nothing to do but wait for some obvious price action to develop from a core level.

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Forex Commentary:

In the currency markets today the U.S. dollar lost ground across the board as a strong U.S. housing report and positive economic data out of Germany worked to restore risk appetite and boost stocks, commodities, and riskier currencies.

The EURUSD moved to $1.3081 from $1.2997, the GBPUSD was up substantially to $1.5663 from $1.5497 on Monday.

Crude oil futures rose about 3% today as commodities were stronger, including gold and silver.

Other Markets:

In the U.S. markets today, stocks had their best day in three weeks on the back of positive economic data out of Germany and the U.S.

The Dow added 337.32 points, or 2.87 percent, the S&P 500 gained 35.95 points, or 2.98 percent, and the Nasdaq gained 80.59 points, or 3.19 percent.

Upcoming important economic announcements: 12/21/2011

Tentative: Japan – BOJ Press Conference
4:30am EST: Britain – MPC Meeting Minutes
4:30am EST: Britain – Public Sector Net Borrowing
8:30am EST: Canada – Core Retail Sales m/m
10:00am EST: United States – Existing Home Sales
4:45pm EST: New Zealand – GDP q/q