Forex Trade Setups Commentary: EURUSD inside-pin bar recap, 6th April 2011

Forex Commentary:

The euro rose on Wednesday to a 14-month high against the dollar on speculation the European Central Bank will signal further interest rate rises following an expected increase this week, though there’s room for disappointment.

The yen slid to an 11-month low against the euro and a six-month low against the dollar.

The high-yielding Australian dollar AUDJPY surged to 89.28 yen, its highest since September 2008, with 90 yen seen as the next possible target.

Trading Setups / Chart in Focus:

EURUSD

In our commentary from March 30th we discussed an inside pin bar trading strategy that formed on the daily chart of the EURUSD, and the possibility of price breaking higher from the setup and re-testing resistance near 1.4280.

Today, price hit a 14-month high as it broke through the resistance at 1.4280, closing the day around 1.4330. We can see that the inside-pin bar setup discussed in the commentary from last week was just one of a few different price action setups that have provided savvy traders with an excellent opportunity to ride this recent uptrend in the EURUSD. This market is still looking bullish overall and pullbacks to value could be viewed as buying opportunities pending price action confirmation.

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 pushed higher with caution as investors avoided making big bets ahead of earnings.

The Dow gained 32.85 points, or 0.27 percent, the S&P 500 added 2.91 points, or 0.22 percent, and the Nasdaq gained 8.63 points, or 0.31 percent.

Upcoming important economic announcements: 4/7/2011

Tentative: Japan – BOJ Press Conference
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 – Building Permits m/m
8:30am EST: Euro-zone – ECB Press Conference
8:30am EST: United States – Unemployment Claims