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Nial Fuller

NIAL FULLER
Professional Trader, Author & Trading Coach

Forex Commentary, NZD/USD bearish pin bar setup 3-10-10

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By in Forex Trading Commentary Last updated on | 5 Comments

Daily Forex Market Commentary:

The U.S. dollar traded mostly higher today as both Gold and Crude Oil fell. Crude Oil closed down 0.4% at $81.17 a barrel after spiking up to hit a high of $83.12 a barrel, the highest price since early January.

The greenback gained modestly on the euro, franc, pound, yen and kiwi dollar, while losing modestly to the Canadian dollar and Australian dollar.

Looking ahead, economic reports will likely influence the currency markets over the next 48 hours. Tomorrow we will see U.S. Trade Balance and weekly Unemployment Claims while Friday brings us U.S. Retail Sales and Consumer Sentiment.

Stocks:

On Wall Street today stocks closed modesty higher on the back of hopes that renewed business demand will boost corporate profits. Bank and technology shares led the way with the Nasdaq closing up 18.27 points or 0.8 percent, the S&P was up 5.16 or 0.5 percent, and the Dow was only up 2.95 points or less than 0.1 percent.

Volume has been light this week as there has not been much economic data to fuel the market. Reports on weekly unemployment claims, retail sales, and consumer sentiment will come out over the next two trading days and should provide some sense of clarity about the strength of the economy.

Currency pair in focus: NZD/USD

Today we are taking a look at the daily chart of NZDUSD. A well defined bearish pin bar has formed showing clear rejection of the very strong resistance zone between 0.7050-0.7100.

This price action setup is meeting all the characteristics for a well formed pin bar setup. It is also showing clear rejection of a confluent level which gives this setup added significance.

We like to see these types of price action setups here at LTTTM, we hope that you enjoy our simple yet highly effective take on price action trading, for more education, setups, and commentary check out the member’s forum

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

  1. Giles March 15, 2010 at 11:59 pm

    Thanks for this explanation Nial – I particularly noted you pointing out that it was a very strong resistance level that this pin bar came from – Helpfulf to realise that not all Support or Resistance levels are created equally…

    GIles

    Reply
  2. Scott March 12, 2010 at 11:13 am

    Can you please share with us your entry on this? You teach from your videos to enter on 50% of the pin bar. On this particular move the entry order would have not been hit, because the following bar never retraced enough to get into the market.

    Reply
    • nial March 12, 2010 at 9:55 pm

      Not all trades are entered on the 50% retrace, as I say, if the market clears the nose of the signal bar, its also an entry, (on stop entry order).
      There was ample evidence of confluence, and we won’t miss an entr for the sake of waiting for a retracement first. Now, youmay have missed this trade if you waited
      for the retrace, but that is trading, it happens. thus you need to stick to your rule and not be emotional.

      Reply
  3. john March 11, 2010 at 6:35 pm

    Love your trading nial. i have one thing on my mind though. I dont see you use your 21 and 8 day ema much these days.. do you still use it and if so when do you use it or do you focus more on pa now only.

    Reply
    • nial March 12, 2010 at 9:57 pm

      We use it, but its for trending markets ,like we have now on gbpusd and other pairs, its a trend filter, but not used exlusively. as i try to explain,
      we look for price action first, then work out if theres confluent factors, ths 8 and 21 day ema are confluent trend factors to work in with price aciton signal evidence.

      Reply

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