Forex Commentary: EURUSD and USDJPY support and resistance, 8th June 2011

Forex Commentary:

The dollar and yen rose on Wednesday as worries that a slowing U.S. economy may stall global growth fueled a bid for currencies seen as safe havens.

The yen rose against both the dollar and euro, with the greenback falling to a one-month trough at 79.693 yen. The dollar was last down 0.2 percent at 79.890 yen.

The commodity-sensitive Australian dollar shed 0.9 percent to US$1.0611, while the greenback rose 0.5 percent against the Canadian dollar to C$0.9792.

Trading Setups / Chart in Focus:

EURUSD

The EURUSD rotated lower today. However, we can see price has thrust higher recently and the 8 and 21 day EMA’s are crossed higher.

We will watch the dynamic support in between the 8 and 21 day EMA’s for bullish price action strategies forming on the back of any rotations lower that may occur in the near-term. Should price continue its ascent from current levels we are seeing resistance near 1.4900.

USDJPY

The USDJPY challenged support at 79.55 today but could not break lower. Should price rotate higher back to value, we see resistance coming in between the 8 and 21 day EMAs; around 80.75. Price will need to break through 79.55 support to pave the way for a larger downside move.

For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my Forex price action trading course.

Other Markets:

On Wall Street today stocks lost ground for the sixth day in a row as investors worried that the slowing economy could push the market lower still.

Stocks are still positive for 2011, but the recent move lower has taken a huge chunk out of those gains.

The Dow lost 21.87 points, or 0.18 percent, the S&P 500 dropped 5.38 points, or 0.42 percent, and the Nasdaq lost 26.18 points, or 0.97 percent.

Upcoming important economic announcements: 6/9/2011

7:00am EST: Britain – Asset Purchase Facility
7:00am EST: Britain – Official Bank Rate
Tentative: Britain – MPC Rate Statement
7:45am EST: Euro-zone – Minimum Bid Rate
8:30am EST: Canada – Trade Balance
8:30am EST: Euro-zone – ECB Press Conference
8:30am EST: United States – Trade Balance
8:30am EST: United States – Unemployment Claims