Daily Forex Market Commentary:

The U.S. dollar traded mixed today, the greenback gained ground on the British pound, euro, and Swiss franc while losing to the Japanese yen, Australian dollar, New Zealand dollar, and Canadian dollar.

The AUDUSD is looking strong after breaking up past the downtrend line resistance line near 0.9220-0.9250. Next upside resistance comes in around 0.9400. The RBA (Reserve Bank of Australia) raised interest rates up to 4.25% from 4.00% yesterday, bolstering the currency against the greenback.

The euro weakened today on renewed concerns regarding Greece and a planned aid package from the IMF.

Looking ahead, current trends seem to be safe, watch for price action setups in the direction of the recent daily momentum in all the currency pairs, see chart commentary in the member’s area for more details for more details.

Stocks:

On Wall Street today stocks were mixed with the S&P 500 and Nasdaq gaining modest ground after the financial sector got a lift from positive comments from market analysts, the minutes from the Federal Reserve’s last meeting also worked to lift the financial sector after it suggest the central bank could keep interest rates at ultra-low levels longer than investors had anticipated should the economy worsen.

The Dow continued to flirt with the psychological 11,000 level, coming within 13 points of the level after a brief run into positive territory following the Fed’s minutes. The Dow closed lower however, by 3.56 points, the S&P 500 added 2.00 points, and the Nasdaq rose 7.28 points.

Currency pair in focus: AUDUSD inside bar breakout

Today we are looking at the AUDUSD inside bar breakout that we discussed in the commentary from 4-3-10, see the commentary here: inside bar setup. The inside bar ended up quickly tripping stops to the downside before roaring back in the direction of the recent daily momentum to the upside.

Inside bars are best played with the dominant daily momentum, which was clearly bullish as we can see in the chart below. Note that the next solid resistance level comes in around 0.9400.

Check out this link for an article on the inside bar: forex inside bar setup

Also, check out an article on the 50% retracement technique: Trading 50% retracements with price action

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