Forex Commentary: Gold pin bar and EURUSD recap., 1st December 2010

Forex Commentary:

Efforts to resolve the European-Union’s debt crisis helped to strengthen the euro today against the other majors, causing the EURUSD to gain about 150 pips.

The Japanese yen lost significant ground today to all the other major currencies as risk appetite increased dramatically today with equities and commodities both rising significantly.

Trading Setups / Chart in Focus:

GOLD and EURUSD

Gold pushed higher again today as the inside / pin bar setup from Monday continued to pay off for savvy price action traders. Price could not close above resistance near 1390, but if it can push above this level in the coming days we may see a re-test of the all-time highs near 1425/ounce, otherwise we may see a rotation back down toward value near the 21 day ema seen on the chart below.

The EURUSD reversed all of yesterday’s losses today and appears to be poised for a possible counter-trend rally back into value near the 8 / 21 day emas. We see 1.3340 as being a pretty significant level and would look to short between 1.3340-1.3450 on confirmation from a solid bearish intra-day or daily price action signal.

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

Other Markets:

On Wall Street today the Dow and S&P 500 posted their largest gains in three months on the back of efforts to resolve the euro-zone’s debt problems.

The S&P 500 broke above the technically significant 1,200 level today; this level is significant and signals the potential for the rally to continue.

The Dow gained 249.76 points, or 2.27 percent, the S&P 500 added 25.52 points, or 2.16 percent, and the Nasdaq added 51.20 points, or 2.05 percent.

Upcoming important economic announcements: 12/2

4:15am EST: Switzerland – Retail Sales y/y
2nd 7th: Britain – Halifax HPI m/m
8:45am EST: Euro-zone – Minimum Bid Rate
9:30am EST: Euro-zone – ECB Press Conference
9:30am EST: United States – Unemployment Claims
11:00am EST: United States – Pending Home Sales m/m