Trading Setups / Chart in Focus:

EURUSD

The EURUSD formed another pin bar today, however we are still bearish mid to long-term on this market and we will look to sell any rallies into resistance that give way to bearish price action setups. Traders can look for price action sell-signals near 1.3900 resistance to re-join the overall bearish sentiment in this market.

AUDUSD

The AUDUSD has been consolidating just above 1.0175 support for the last five days now. Price will need to break down below this level to continue the downtrend. We still have a short bias on this market so we would look to sell any bearish price action setups forming in the daily 8 / 21 EMA resistance layer on any rotations higher in the near-term.

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Forex Commentary:

The U.S. dollar posted slim gains Tuesday, wavering on both sides of unchanged versus the euro after Greece made a debt payment, even after Italy’s credit rating was downgraded a notch by Standard & Poor’s.

The EURUSD traded at $1.3698, from $1.3681 in late-afternoon North American trading on Monday. It ranged from $1.3744 and $1.3592 during the session.
The dollar index, which tracks the U.S. unit against a basket of six currencies, inched up to 76.127, versus 77.089 Monday.

The Swiss franc weakened significantly after growth and trade data showed a growing impact on the country’s economy from a strong currency, fueling speculation the Swiss National Bank may lift the floor for the euro versus the franc.

The International Monetary Fund on Tuesday lowered its forecast for world growth and cited significant risks to the economic outlook. It said Europe and the United States could slip back into recession.

Other Markets:

On Wall Street today stocks ended nearly flat as early-session gains diminished into the close as investors waited to see if the U.S. Federal Reserve will offer more economic stimulus at tomorrows Fed meeting and if progress was made in Greece debt talks.

The Dow added 7.65 points, or 0.07 percent, the S&P 500 lost 2.00 points, or 0.17 percent, and the Nasdaq dropped 22.59 points, or 0.86 percent.

Upcoming important economic announcements: 9/21/2011

4:30am EST: Britain – MPC Meeting Minutes
4:30am EST: Britain – Public Sector Net Borrowing
7:00am EST: Canada – Core CPI m/m
10:00am EST: Untied States – Existing Home Sales
2:15pm EST: United States – FOMC Statement
6:45pm EST: New Zealand – GDP q/q
10:30pm EST: China – HSBC Flash Manufacturing PMI