Forex Trade Setups Commentary: AUDJPY Inside Bar Pin Bar Combo 6-19-10

Forex Trade Setups Commentary:

AUDJPY Inside Bar Pin Bar Combo

The AUDJPY has reclaimed its recent highs near 78.00-79.00 forming multiple daily pin bars recently that are showing the pair is maintaining is buoyancy.

Notice also the 8 period EMA in the chart, price has shown rejection of this dynamic support area on 3 occasions over this previous week.

Should this inside bar pin bar combo breakout decisively to the upside we could see a move up towards 82.00 which also coincides with the Fibonacci 61.8% retracement level. Alternatively, it is possible a “false break” to the upside could occur resulting in a bearish fakey setup. Price action will tell us soon enough.

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Commentary:

The euro rose 2.1 percent against the U.S. dollar this week, its best weekly performance since May 2009, as anxiety about the fiscal health of euro zone countries eased this week and Spain attracted buyers for an auction of its debt.

The euro slid to a record low EURCHF at 1.3718 Swiss francs, according to Reuters data, while the dollar hit a one-month low of 1.1081 francs.

U.S. gold futures settled at the highest close ever after racing to a record level as investors continued to buy precious metals as an alternative asset after weak U.S. data on Thursday renewed worries about the pace of recovery, traders said.

U.S. gold futures for August delivery GCQ0 in New York climbed to record $1,263.70 an ounce, and settled up $9.60 at $1,258.30, its highest close.

“It is a case of gold’s ability to compete with both credit and equity markets for investments. Competing with credit markets has been in play for a long time, because of low interest rates and low opportunity cost of holding gold,” said Tom Pawlicki, precious metals analyst at MF GLOBAL in Chicago

The Dow rose 16.47 points, or 0.16 percent, the S&P 500 added 1.47 points, or 0.13 percent, and the Nasdaq added 2.64 points, or 0.11 percent.