Forex Trade Setups Commentary: Gold and GBPUSD recap, 27th April 2011

Forex Commentary:

The euro hit a session peak of $1.4791, up 1 percent on the day and at its highest level since the final month of 2009. The dollar also fell to a three-year low against six major currencies.

The Fed left interest rates at record lows as expected on Wednesday. Chairman Ben Bernanke said a strong dollar was in the U.S. interest but said the best way to ensure that was to create conditions for solid economic growth.

The Fed also said it expects full-year U.S. gross domestic product growth to range between 3.1 percent and 3.3 percent, compared to an earlier 3.4-3.9 percent forecast.

Trading Setups / Chart in Focus:

Gold

Gold pushed substantially higher today as the pin bar setup that we discussed in yesterday’s commentary fired off to the upside.

We can see this pin bar was obvious and well defined, and it was also with the trend and showing rejection of the dynamic 8 day EMA support level, thus it was a very solid price action trading setup.

GBPUSD

The 4 hour GBPUSD fakey – pin bar trading strategy that we discussed in yesterday’s commentary has come off to the upside. There was a brief rotation lower after it triggered higher, but the recommended stop placement is below the pin bar low for this setup, in which case it would not have gotten hit. This was a solid price action trading strategy with the dominant trend.

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

Other Markets:

On Wall Street today stocks rose with the Nasdaq jumping to a 10-year high after Fed Chairman Ben Bernanke’s first-ever press conference did nothing to stall investors’ optimistic view on the economy.

The Dow gained 95.59 points, or 0.76 percent, the S&P 500 added 8.42 points, or 0.62 percent, and the Nasdaq added 22.34 points, or 0.78 percent.

Upcoming important economic announcements: 4/28/2011

Tentative: Japan – BOJ Press Conference
8:30am EST: United States – Advance GDP q/q
8:30am EST: United States – Unemployment Claims
10:00am EST: United States – Pending Home Sales m/m