Trading Setups / Chart in Focus:

EURUSD

Note: I Have Just Posted Up an Important Forex Market Update Here – ‘Make Money From The Current Market Volatility’

The EURUSD formed a bearish pin bar reversal setup today, showing rejection of the 8 / 21 EMA daily resistance layer. If price breaks down past the low of today’s pin bar, we see the potential for a resumption of the downtrend. Keep in mind that support sits down just below 1.3400 and price will need to close below this level to open the door for a larger move lower. If price rotates higher we will watch resistance near the 21 day EMA for potential selling opportunities.

GBPUSD

The GBPUSD formed an inside bar trading strategy today just below the resistance area between 1.5700 – 1.5775. Price has completed a counter-trend retrace to the 8 day EMA and we could see a resumption of the downtrend if today’s inside bar setup breaks lower. If price rotates higher we will watch the previously mentioned resistance area for price action sell signals.

Note: I Have Just Posted Up an Important Forex Market Update Here – ‘Make Money From The Current Market Volatility’

Special note: This Month I am Offering A Special Discount On Lifetime Membership To My Forex Trading Course and Price Action Trading Community. For a more in-depth analysis of the major Forex currency pairs and price action analysis of more markets, please check out my Forex price action trading course.

Forex Commentary:

The U.S. dollar gained ground against most of the other majors today as worries about the European debt crisis persisted and commodities declined further.
The EURUSD moved to $1.3541 against the greenback after hitting a high of $1.3689 earlier in today’s session.

The U.S. dollar lost ground to the Japanese yen today but gained against the British pound, Australian dollar and the other majors.

Other Markets:

On Wall Street today stocks moved lower led by a drop in commodity-linked shares. Large declines in metals and energy worked to highlight concerns investors have had recently over the weakness of the global economy along with the continued debt crisis in Europe.

The Dow lost 179.79 points, or 1.61 percent, the S&P 500 dropped 24.32 points, or 2.07 percent, and the Nasdaq lost 55.25 points, or 2.17 percent.

Upcoming important economic announcements: 9/29/2011

2:00am EST: Britain – Nationwide HPI m/m
8:30am EST: United States – Unemployment Claims
10:00am EST: United States – Pending Home Sales m/m
5:45pm EST: New Zealand – Building Consents m/m
8:00pm EST: New Zealand – NBNZ Business Confidence