Forex Commentary: EURUSD and GBPUSD update, 27th June 2011

Trading Setups / Chart in Focus:

EURUSD

The EURUSD consolidated today; rotating back up on itself. The daily 8 and 21 EMAs are crossed lower and we see some bearish pressure still in this market. However the near-term view is that more sideways price movement is likely while price is between 1.4450 and 1.4050.

GBPUSD

The GBPUSD found some support today down near 1.5950 area. The pair did form a fakey forex strategy, however, given the recent strength of the move lower, we would caution at trying to trade counter-trend here.

We would have liked to see a very large rejection pin bar form as the false-break bar today to warrant taking a long against momentum here. As that did not happen, we are content to wait and see what happens and pound on any short setups from value if they present themselves.

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Forex Commentary:

The euro rose on Monday as investors bet Greece’s parliament will approve a fiscal austerity package needed for the country to get emergency aid and avoid defaulting on its debt.

The euro was last up 0.6 percent at $1.4277 against the U.S. dollar. The euro also rose 1.2 percent against Japan’s yen to 115.48 yen.

The dollar added 0.6 percent to 80.86 yen. It also rose 0.3 percent to 0.8355 Swiss francs

Other Markets:

On Wall Street today stocks rallied after three consecutive days of losses, led higher by banks after regulators announced global capital rules that investors viewed as less oppressive than previously expected.

The Dow added 147.47 points, or 1.24 percent, the S&P 500 gained 14.54 points, or 1.15 percent, and the Nasdaq gained 39.27 points, or 1.48 percent.

Upcoming important economic announcements: 6/28/2011

4:30am EST: Britain – Current Account
5:00am EST: Britain – Inflation Report Hearings
10:00am EST: United States – CB Consumer Confidence