Trading Setups / Chart in Focus:

GBPUSD

The GBPUSD lost ground today, however it did close up well off the day’s low. We can see price hit support near 1.5950 before bouncing higher to close the day. The 8 and 21 day EMA’s are clearly diverging lower, so we will keep a close eye on resistance near 1.6075 and the 8 day EMA for potential bearish price action setups should a rotation higher occur.

Gold

Gold fell substantially lower today after the false break and pin bar rejection of resistance near $1550.00 that occurred on Wednesday.

We discussed this false break pin bar setup in our members’ commentary yesterday. We can see support comes in near $1515.00 – $1510.00.

For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my price action Forex trading course.

Forex Commentary:

The dollar rose against the euro for a second straight session on Thursday but gains were curbed after Greece won consent of a team of European Union-International Monetary Fund inspectors for its new five-year austerity plan.

The U.S. dollar, however, still reigned supreme against the euro as fears about global growth had investors rushing to safety following a downgraded outlook from the U.S. Federal Reserve and ongoing uncertainty about a resolution of Greece’s debt crisis.

In late afternoon New York trading, the euro fell 0.7 percent against the dollar to $1.4256, according to Reuters data, up from a global session low of $1.4125.

Other Markets:

On Wall Street today stocks closed well off session lows on the back of news that Greece agreed to a five-year austerity plan, however, lingering economic uncertainty kept a downtrend in place for the S&P 500.

U.S. crude oil futures settled at $91.02 a barrel, down $4.39 or off 4.6 percent, after the International Energy Agency said it will release 60 million barrels of oil from strategic stockpiles.

The Dow lost 59.67 points, or 0.49 percent, the S&P 500 lost 3.64 points, or 0.28 percent, and the Nasdaq added 17.56 points, or 0.66 percent.

Upcoming important economic announcements: 6/24/2011

4:00am EST: Euro-zone – German Ifo Business Climate
5:30am EST: Britain – BOE Gov King Speaks
8:30am EST: United States – Core Durable Goods Orders m/m