Forex Commentary, AUDJPY update, USDCAD pin bar / fakey setup, 5-15-10

Daily Forex Market Commentary

Currency pair in focus: AUDJPY and USDCAD

Update: AUDJPY Bearish Pin Bar Setup

The AUDJPY bearish pin bar setup we discussed in last Thursday’s commentary has come off nicely to the downside into the close of last week’s trading session.

This pin bar setup had a number of factors contributing to its success. Some of these include its quality of definition and the fact that it occurred in the context of volatile market conditions and showed rejection of a strong horizontal level.

For more information on the pin bar setup and other price action setups please check out some of these forex trading videos.

USDCAD: Pin Bar / Fakey setup

The USDCAD formed a good pin bar / fakey combo setup last Thursday that came off very nicely on Friday. Our member’s got notice of this great price action setup shortly after the New York close on Thursday evening.

For more information on pin bar and fakey setups please click here: Forex Strategies

For a more in-depth analysis of the major FX pairs as well as price action training, please check out my forex trading course.

Commentary:

The U.S. dollar gained ground on most of the major currencies Friday, with the exception being the Japanese yen. The yen was the biggest winner Friday as we saw a return to risk aversion due to persisting concerns over the European debt crisis.

Commodity prices were lower Friday as well, oil slid to a 3-month low to below $72 a barrel, this helped to further support the bullish sentiment behind the U.S. dollar. The euro fell to an 18-month low against the greenback today.

The Dow lost 162.79 points, or 1.51 percent, the S&P 500 lost 21.76 points, or 1.88 percent, and the Nasdaq dropped 47.51 points, or 1.98 percent.

Stocks might face more volatility next week as mounting concerns regarding whether or not Europe can solve its worsening debt crisis are likely to take the spotlight again.

It is worth noting however that the Dow rose 2.3 percent for the week, the S&P 500 rose 2.2 percent, and the Nasdaq climbed 3.6 percent.