Forex Trade Setups Commentary: EURUSD inside-pin, 7th December 2010

Forex Commentary:

The U.S. dollar closed today stronger against most of the other majors, with the exception being the British pound which it lost modest ground to, although it did recoup much of its earlier losses to the pound as the day closed out.

Gold and silver both sold significantly lower today as the all-time highs both of the precious metals made yesterday came to a crashing reversal today.

Trading Setups / Chart in Focus:

EURUSD

The EURUSD formed an inside / pin bar today in the dynamic resistance area between the 8 and 21 day emas, this area also coincides with a horizontal level of resistance that was previously support. If this inside – pin bar setup breaks lower we may see a resumption of downward momentum and possibly a re-test of support near 1.2950.

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Other Markets:

On Wall Street today stocks closed little changed as investors’ enthusiasm over a deal for extension of tax cuts was cut short by rising bond yields and new reports that regulators were stepping up an insider-trading probe.

“The market has had a nice run. Investors are a little nervous about the move we just had and are looking for any type of reason to sell off,” said Angel Mata, managing director of listed equity trading at Stifel Nicolaus Capital Markets in Baltimore.

The Dow lost 3.03 points, or 0.03 percent, the S&P 500 gained 0.63 points, or 0.05 percent, and the Nasdaq added 3.57 points, or 0.14 percent.

Upcoming important economic announcements: 12/8

8th-9th – Britain – Halifax HPI – m/m
8:15am EST: Canada – Housing Starts
3:00pm EST: New Zealand – Official Cash Rate
3:00pm EST: New Zealand – RBNZ Press Conference
3:00pm EST: New Zealand – RBNZ Rate Statement
7:30pm EST: Australia – Employment Change
7:30pm EST: Australia – Unemployment Rate
Tentative : China – Trade Balance