Forex Trade Setups Commentary: GBPUSD and AUDUSD at resistance, 23rd August 2011

Trading Setups / Chart in Focus:

GBPUSD

The Sterling / Dollar rejected higher prices again today after price made an early attempt to venture into the resistance zone between 1.6500-1.6600. We can see another pin bar has formed and price again closed below 1.6500. As we stated yesterday, if price stays contained below 1.6500 we could see a move lower.

AUDUSD

The AUDUSD pushed higher today, into the 21 day EMA resistance level. Resistance near 1.0600 will need to hold for the downward bias to remain intact. There isn’t much to do now but wait and see what happens and watch price action around 1.0600 resistance.

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Forex Commentary:

The U.S. dollar fell on Tuesday on hopes the Federal Reserve will ease policy further to stimulate a flagging U.S. economy, while better-than-expected German and Chinese factory data tempered worries about global growth.

The EURUSD last traded up 0.6 percent at $1.4443 after climbing as high as $1.45; the top of a tight $1.40-$1.45 range that has held firm since early July.

The Australian dollar rose 1.2 percent to $1.0518. Strong Australian-Chinese trade links make the Aussie sensitive to Chinese economic data. The New Zealand dollar jumped 1.3 percent to $0.8344

Other Markets:

On Wall Street today U.S. stocks rose 3 percent on speculation Fed Chairman Ben Bernanke would signal new help for the economy this week, relieving some of the fear from the recent four-week sell-off.

The Dow added 322.11 points, or 2.97 percent, the S&P 500 gained 38.53 points, or 3.43 percent, and the Nasdaq gained 100.68 points, or 4.29 percent.

Upcoming important economic announcements: 8 /24/2011

4:00am EST: Euro-zone – German Ifo Business Climate
8:30am EST: United States – Core Durable Goods Orders m/m
6:45pm EST: New Zealand – Core Retail Sales q/q