Trading Setups / Chart in Focus:

Gold

Gold dropped significantly lower today as the pin bar from Friday came off to the downside and price broke down through support at $1700.00. I discussed this pin bar strategy as a potential short trade in the members’ forum over the weekend, and many of our members took this trade that has returned a very nice risk reward. We also discussed 4hr bearish pin bars in the EURUSD and GBPUSD in our members’ daily commentary from Friday and in the forum over the weekend.

EURUSD

The EURUSD moved significantly lower today and closed the day just above support near 1.3150. We can see the fakey with pin bar setup from December 2nd has paid off nicely after chopping sideways for about a week. If price closes below 1.3150 we could see the downtrend extend, otherwise we will see consolidation near this support or a bounce higher back into the 8 / 21 dynamic EMA resistance.

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Forex Commentary:

In the currency markets today, the EURUSD moved to a ten-week low over worries that the new financial agreement between European leaders will not be enough to stop the euro-zone’s debt crisis.

The euro dropped to $1.3186 against the dollar, down from $1.3369 on Friday.

In other currency trading, the GBPUSD dropped to $1.5580 from $1.5661 on Friday. The greenback rose to 77.90 Japanese yen from 77.54, 1.0269 Canadian dollars from 1.0182, and 1.0070 Australian dollars from 1.0213.

Other Markets:

In the U.S. markets today, stocks lost significant ground as concerns about the euro-zone debt crisis continued. Markets were spooked today when major credit ratings agencies gave warnings that leaders in Europe still have not done enough to stop the region’s debit crisis from worsening over time.

The Dow lost 162.72 points, or 1.34 percent, the S&P 500 lost 18.70 points, or 1.49 percent, and the Nasdaq lost 34.59 points, or 1.31 percent.

Upcoming important economic announcements: 12/13/2011

4:30am EST: Britain – CPI y/y
5:00am EST: Euro-zone – German ZEW Economic Sentiment
8:30am EST: United States – Core Retail Sales m/m
8:30am EST: United States – Retail Sales m/m
2:15pm EST: United States – FOMC Statement
7:30pm EST: Australia – Trade Balance