Forex Trade Setups Commentary: EURUSD and USDJPY recap, 15th December 2010

Forex Commentary:

The U.S. dollar gained ground today against the other majors, except for the Canadian dollar, after Moody’s warned Spain that its debt rating could be downgraded, bringing concerns about the euro-zone debt crisis back to the forefront and causing the greenback to rise.

The Japanese yen was the other big winner from today’s global economic uncertainty, gaining on all the other majors except the U.S. dollar and Canadian dollar.

Trading Setups / Chart in Focus:

EURUSD

The EURUSD formed a bearish pin bar yesterday showing rejection just above its 21 day ema and of the horizontal resistance area near 1.3500. Support now sits near 1.3175 – 1.3150, price will need to break through this level to make any new significant down side gains. We discussed this setup as a possible shorting opportunity in our member’s forum before it came off yesterday.

USDJPY

The USDJPY formed two bullish pin bars on the 4 hour chart recently; the second one has worked out very nicely while the first one would not have worked. This just goes to show that not every setup will work out in your favor, but if you trade only quality price action setups and have a thorough understanding of risk / reward, you can still make good money in the forex market.

To learn more about the fakey setup and the specific techniques I teach traders to use to enter the fakey, check out my price action forex trading course.

Other Markets:

On Wall Street today stocks lost ground after a third consecutive late day sell-off, making it seem less likely we will see any more significant gains for 2010 in the stock market.

The Dow lost 19.07 points, or 0.17 percent, the S&P 500 lost 6.36 points, or 0.51 points, and the Nasdaq lost 10.50 points, or 0.40 percent.

Upcoming important economic announcements: 12/16

3:20am EST: Britain – MPC Member Posen Speaks
3:30am EST: Switzerland – Libor Rate
3:30am EST: SNB Monetary Policy Assessment
3:30am EST: SNB Press Conference
Day1: Euro-zone – EU Economic Summit
4:30am EST: Britain – Retail Sales m/m
8:30am EST: United States – Building Permits
8:30am EST: United States – Unemployment Claims
10:00am EST: United States – Philly Fed Manufacturing Index