Trading Setups / Chart in Focus:

EURUSD

EURUSD pair hit resistance at the top of the current trading range and has pulled back into the 8 and 21 day EMAs this could be 2 things:

1. A gentle pull back before we rally back up or

2. A reversal signal that carries lower into Friday

The short term trend pressure remains up, but this overhead level at 1.4500 area looks quite strong. It’s a matter of watching this pair at the moment, as there is no convincing price action trade setups right now.

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Forex Commentary:

The U.S. dollar gained ground today, helped out by a lack of news on U.S. debt ceiling talks, although the uncertainty is widely expected to keep the rally short-lived.

The dollar earlier fell to a record low against the Swiss franc and a three-week trough versus the euro. It recovered as investors locked in profits on short positions in the greenback this week.

The euro was down 0.9 percent at $1.43715, having earlier climbed to $1.45370.

The dollar earlier fell to a four-month low of 77.570 yen, just short of a reported option barrier at 77.50. It was last up 0.2 percent at 78.021 yen. The record low in the pair was 76.250 hit in mid-March.

The Australian dollar, rose 0.6 percent to US$1.1019, after earlier touching a high of US$1.1081. Helped by strong Australian inflation data. The peak was the highest since December 1983 when it was first allowed to float freely.

The New Zealand dollar also touched its highest against the U.S. dollar since being allowed to float freely in March 1985 at $0.8766 early in the global day.

Other Markets:

On Wall Street today stocks suffered their worst day in eight weeks on the back of weak earnings, poor economic data and no progress in Washington debt talks.

The Dow lost 198.75 points, or 1.59 percent, the S&P 500 lost 27.05 points, or 2.03 percent, and the Nasdaq dropped 75.17 points, or 2.65 percent.

Upcoming important economic announcements: 7/28/2011

8:30am EST: United States – Unemployment Claims
10:00am EST: United States – Pending Home Sales m/m
6:45pm EST: New Zealand – Building Consents m/m