Forex Commentary: EURUSD downtrend, 29th November 2010

Forex Commentary:

Over the weekend, European Union finance ministers endorsed an 85 billion euro loan package to help Ireland bridge its deficit, however, investors are concerned about how the 16-nation bloc might handle a wider crisis involving Spain and Portugal.

The U.S. dollar gained strength today against all the other majors except the Swiss franc; however it retraced some of these gains as the trading day came to a close in New York.

Trading Setups / Chart in Focus:

EURUSD

The EURUSD has pushed below support near 1.3350 – 1.3300, in the midst of this current downtrend if we get a rotation back to the value area around the 8-day ema / previous horizontal resistance area near 1.3300, we would look to sell on confirmation from a bearish price action setup.

The EURUS 4hr chart provided traders with a solid signal today that they could have used to enter the downtrend off of, this was an obvious pin bar setup that showed rejection of the strong 1.3300 support / resistance level.

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Other Markets:

On Wall Street today stocks pushed lower in light trading after persistent worries that Europe’s credit crisis will spread even in the face of a weekend agreement to bail out Ireland.

Stocks did finish the day well off their lows however, the dollar gave back some of its early –session gains and energy and financial stocks rallied late in the session.

The Dow lost 39.51 points, or 0.36 percent, the S&P 500 dropped 1.64 points, or 0.14 percent, and the Nasdaq lost 9.34 points, or 0.37 percent.

Upcoming important economic announcements: 11/30

9:30am EST: Canada – GDP m/m
11:00am EST: United States – CB Consumer Confidence
11:30am EST: Euro-zone – ECB President Trichet Speaks
4:00pm EST: United States – Fed Chairman Bernanke Speaks
8:30pm EST: Australia – GDP q/q
9:00pm EST: China – Manufacturing PMI