Trading Setups / Chart in Focus:

Gold

In our members’ commentary yesterday, we discussed the very obvious and confluent pin bar that formed off $1700.00 support in the gold market. We can see today price has pushed higher as expected. Note how well pin bars at support have worked out in recent months on this gold chart. Horizontal levels combined with price action is truly the simplest trading strategy in the world

EURUSD

The EURUSD consolidated sideways today, closing the day basically unchanged from yesterday. We are seeing some serious sideways chop in this market so far this week and don’t see anything worth trading until the market makes its mind up. The overall trend is still favoring the downside, but we would not be surprised to see volatility in either direction given the on-going volatility in global markets as a result of the euro-zone debt crisis.

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Forex Commentary:

In the currency markets today, the euro gained slight ground on the U.S. dollar as investors waited the results of a meeting of European leaders this week to help stem euro-zone debt problems.

The U.S. dollar lost more significant ground to the British pound today, with the GBPUSD moving up to 1.5707 from 1.5597 yesterday.

The greenback lost modestly to the Australian dollar today as the AUDUSD consolidates just under an important resistance level. The other majors were basically unchanged against the dollar today.

Other Markets:

In the U.S. markets today, stocks moved higher for a third day in a row on the back of hopes that euro-zone leaders will find a solution this week to the region’s ongoing debt crisis.

The Dow closed up by 46.24 points, or 0.38 percent, the S&P 500 gained 2.55 points, or 0.20 percent, and the Nasdaq lost 0.35 points, or 0.01 percent.

Upcoming important economic announcements: 12/8/2011

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
8:15am EST: Canada – Housing Starts
8:30am EST: Euro-zone – ECB Press Conference
8:30am EST: United State – Unemployment Claims
8:30pm EST: China – CPI y/y