Forex Trade Setups Commentary: EURUSD and GBPUSD update, 30th August 2011

Trading Setups / Chart in Focus:

EURUSD

The EURUSD rotated lower today after the false-break of resistance near 1.4500 that we mentioned in yesterday’s commentary. Price is still contained within its recent trading range for now, however, we can see the 21 day EMA dynamic support has been holding strong recently. We will keep an eye on this market and if a breakout does occur we will notify traders of it and any price action that may follow.

GBPUSD

The Sterling / Dollar moved lower today as the 4hr pin bar strategy we discussed in yesterday’s members’ commentary broke lower. We can see the daily chart shows a significant rejection of resistance just below 1.6500 yesterday and then the 4hr chart shows the pin bar setup that formed. It’s also worth noting that a well-defined 1hr pin bar formed within the context of the 4hr pin bar.

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Forex Commentary:

The euro slipped across the board on Tuesday as a deluge of factors from bickering in Europe about a bailout deal for Greece to crumbling U.S. consumer confidence sapped risk tolerance.
The euro earlier fell as low as $1.43850, retreating from a two-month

high of $1.4550 on Monday. The single currency last traded at $1.4440.

The greenback gained substantial ground on the British pound as the GBPUSD closed about 110 pips lower than yesterday.

Other Markets:

On Wall Street today U.S. stocks gained for a third consecutive day after minutes from the latest Federal Reserve meeting fueled expectations that the U.S. central bank will act again to stimulate the economy.

The Dow gained 20.39 points, or 0.18 percent, the S&P 500 added 2.80 points, or 0.23 percent, and the Nasdaq gained 14.00 points, or 0.55 percent.

Upcoming important economic announcements: 8/31/2011

8:15am EST: United States – ADP Non-Farm Employment Change
8:30am EST: Canada – GDP m/m
9:00pm EST: China – Manufacturing PMI
9:30pm EST: Australia – Private Capital Expenditure q/q
9:30pm EST: Australia – Retail Sales m/m