Forex Trade Setups Commentary: Gold fakey and EURUSD pin bar, 20th October 2011

Trading Setups / Chart in Focus:

Gold

The fakey with pin bar setup that we have discussed here recently and more extensively in our members’ area, has come off to the downside providing a nice risk reward for price action traders. Note that this setup was with the dominant daily downtrend and occurred at a confluent “value” point of resistance in the market. We can see price has paused just above $1595.00 support; the next support comes in around $1530.00.

EURUSD

The EURUSD is still contained under 1.3850 – 1.3900 resistance. Whilst under 1.3900 we see the potential for yesterday’s pin bar to still come off to the downside. Price pushed back higher today after breaking the pin bar low and bouncing from the near-term support near 1.3650. No reason to “panic” here, we may see some more consolidation before this pin comes off, but it’s still a valid setup.

Check out this cool new Forex trading lesson: The Simplest Forex Trading Strategy in the World

Special Note: This Month I’m Offering A Discount On My Forex Price Action Trading Course and Price Action Traders Community. To Find out More Visit the Price Action Forex Trading Course Page Here.

Forex Commentary:

In the currency markets today, the U.S. dollar traded up and down against the other majors as it was buoyed by positive news regarding the U.S. economy and negative news about Greek debt problems, but later in the day euro-zone news turned more positive and this worked to weaken the dollar againt the other majors.

The EURUSD moved to $1.3778 from $1.3758 on Wednesday. The greenback closed the day essentially unchanged against the Japanese yen.

The GBPUSD moved up to $1.5789 from $1.5771 on Wednesday, and the greenback also lost modest ground to the Canadian dollar and Australian dollar today.

Other Markets:

In the U.S. markets today, stocks closed the day mixed as investors were on edge regarding a solution to the euro-zone debt crisis.

The Dow added 37.16 points, or 0.32 percent, the S&P 500 gained 5.51 points, or 0.46 percent, and the Nasdaq lost 5.42 points, or 0.21 percent.

Upcoming important economic announcements: 10/21/2011

4:00am EST: Euro-zone – German Ifo Business Climate
4:30am EST: Britain – Public Sector Net Borrowing
7:00am EST: Canada – Core CPI m/m