Daily Forex Market Commentary

The U.S. dollar lost ground today to the British pound, Australian dollar, Japanese Yen, and Canadian dollar, while gaining slightly on the euro, Swiss franc, and New Zealand dollar.

Gold and crude oil also closed higher today, putting further pressure on the greenback.

Looking ahead, the recent plethora of positive U.S. economic data has had a stimulating effect on equities and commodities, which generally leads the U.S. dollar to decrease in value against currencies with higher interest rates.

This might change should inflation become a concern within the U.S., this would led the U.S. Federal Reserve Bank to discuss the possibility of raising interest rates, which would work to bolster the U.S. dollar against the majors and reduce the advance in equities and commodities.

Stocks:

On Wall Street today stocks climbed higher, the Dow nearly hit 11,000 as an improving labor market raised hopes the economy is becoming stronger and the profit outlook is becoming more positive.

Energy shares rose substantially as U.S. front-month crude oil futures broke above $86 a barrel, Exxon Mobil Corp was up almost 1 percent and Chevron Crop rose 1.3 percent

The Dow and the S&P 500 both closed the session at new 18-month highs, while the Nasdaq rose to a 19-month closing high. The Dow gained 46.48 points, or 0.43 percent, the S&P 500 rose 9.34 points, or 0.79 percent, and the Nasdaq gained 26.95 points, or 1.12 percent.

Currency pair in focus: USD/JPY Fakey

Today we are recapping the USDJPY bullish fakey setup from 3/30. This setup has provided traders a reward of at least 2 times their initial risk, this is what we look for at a minimum here at learn to trade the market.

Now that 93.75 has been decisively penetrated to the upside it is likely that it will switch to support, this market is clearly bullish but will likely experience consolidation or a pullback lower before another significant leg higher occurs.

We will update traders of any impending price action setups forming, check back here or in the member’s forum for updated information every day on the USDJPY.

Click here for some videos on the fakey setup and other great price action setups: Forex Training Videos

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