Forex Commentary: EURUSD rotation into value, Silver weekly recap, 23rd March 2011

Forex Commentary:

The euro pulled back after hitting a 4-1/2-month high against the dollar on Tuesday but expectations of a euro zone interest rate hike next month could limit any downside for the single currency.

GBPUSD climbed to a 14-month high today, also on expectations of an interest rate hike in coming months after stronger-than-expected UK inflation data

The USDJPY yen traded in a tight range, hovering around 81.00 yen per dollar. In the near term, analysts said the 80-area could serve as a floor, as markets were wary of further intervention by the Group of Seven nations to counter yen strength after Japan’s earthquake, tsunami and resulting nuclear crisis.

Trading Setups / Chart in Focus:

EURUSD

The EURUSD rotated lower today into its 8 day EMA, should price continue to fall in the next 24 hours we will actively watch support between 1.4035 and the 21 day EMA for bullish price action which could provide an entry back into the overall uptrend.

Silver

Silver has literally been in a near parabolic weekly uptrend over the last couple of months, as we can see in the chart below. Today it hit a high of $37.37 an ounce which is the highest price since 1980.

This is a clear example of the effectiveness and power of using simple price action trading strategies to trade higher time frames successfully.

For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my Forex trading education course.

Other Markets:

On Wall Street today stocks ended a three-day win streak on the back of rising oil prices due to fighting in Libya and unrest in Yemen.

The Dow dropped 17.90 points, or 0.15 percent, the S&P 500 dropped 4.61 points, or 0.36 percent, the Nasdaq dropped 8.22 points, or 0.31 percent.

Upcoming important economic announcements: 3/23/11

5:30am EST: Britain – MPC Meeting Minutes
8:30am EST: Britain – Annual Budget Release
10:00am EST: United States – New Home Sales
12:00pm EST: United States – Fed Chairman Bernanke Speaks
5:45pm EST: New Zealand – GDP q/q