Trading Setups / Chart in Focus:

Silver

Silver shot higher today on the back of a bullish pin bar trading strategy that we discussed in yesterday’s commentary. This was a good setup that had confluence with the 8 / 21 day EMA’s recently crossed higher as well as rejection of a short-term horizontal support level through $35.00.

Some of our member’s traded this setup and made a risk reward of 1:2, this is a good example of trading quality price action setups with confluence of levels.

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Forex Commentary:

The U.S. dollar tumbled on Wednesday, posting its worst performance against a basket of currencies in almost a month, after Federal Reserve chief Ben Bernanke said the Fed could inject more stimulus to the U.S. economy if it weakens further.

The U.S. dollar also fell to a record low against the Swiss franc, in the wake of Bernanke’s testimony. The greenback hit a trough of 0.8176 franc, while the euro traded near $1.42, off the prior session’s four-month low beneath $1.39 and on pace for its best day since April.

Surprisingly strong Chinese growth data also helped overshadow worries about the euro zone debt crisis after Fitch Ratings said an ambitious Italian deficit reduction plan would help stabilize the country’s credit rating

The high-yielding, commodity-sensitive Australian and New Zealand dollars rose sharply, advancing 1.3 percent and 2.2 percent, respectively, versus the greenback.

Gold hit a new record high today and Silver was up 7%.

Other Markets:

On Wall Street today stocks halted a 3-day slide, but they closed the day well off their highs as investors decided the hint at more stimulus by the Federal Reserve was a mixed blessing.

The Dow added 44.73 points, or 0.36 percent, the S&P 500 gained 4.08 points, or 0.31 percent, and the Nasdaq added 15.01 points, or 0.54 percent.

Upcoming important economic announcements: 7/14/2011

8:30am EST: United States – Core Retail Sales m/m
8:30am EST: United States – PPI m/m
8:30am EST: United States – Retail Sales m/m
8:30am EST: United States – Unemployment Claims
10:00am EST: United States – Fed Chairman Bernanke Testifies