Forex Trade Setups Commentary: EURUSD holds support, 28th July 2011

Trading Setups / Chart in Focus:

EURUSD

The EURUSD “held the line today”; forming a bullish pin bar after price moved lower early on and bounced from support near the high of the bearish pin bar that formed on July 14th.

We can see price closed back near the 8 day EMA and within the mother bar / inside bar range after triggering the multi-bar fakey lower today. Price is still looking buoyant here, but we are seeing some conflicting signals here as price is sandwiched between support and resistance. Best to stand aside until this market becomes clearer.

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Forex Commentary:

The euro fell broadly on Thursday as gloomy European data and a jump in Italy’s borrowing costs fanned fears of a spreading debt crisis in the euro zone.

The euro is one of the few currencies not benefiting from the threat of America losing its triple-A rating as investors become increasingly doubtful last week’s second bailout for Greece will keep the crisis from spreading to Italy and Spain.

The U.S. dollar, meanwhile, slipped 0.2 percent to 77.780 yen, near a four-month low of 77.570 yen hit on Wednesday. That was also not far from a record low of 76.250 yen struck in March, which triggered coordinated intervention in the market to stem the yen’s strength.

Other Markets:

On Wall Street today stocks lost ground late in the day as investors grew skeptical of a key vote by Congress that would lead to a deal to avoid a U.S. debt default.

The Dow lost 62.44 points, or 0.51 percent, the S&P 500 lost 4.22 points, or 0.32 percent, and the Nasdaq added 1.46 points, or 0.05 percent.

Upcoming important economic announcements: 7/29/2011

2:00am EST: Britain – Nationwide HPI m/m
8:30am EST: Canada – GDP m/m
8:30am EST: United States – Advance GDP q/q