Trading Setups / Chart in Focus:
The GBPUSD rallied up towards the 1.5900 resistance / breakdown level today but found heavy selling pressure there. We can see price formed a bearish pin bar today on the daily chart and 4 hour chart showing rejection of resistance. Many of our members caught the 4hr price action signal today. Next week, we will watch for a further decline if price breaks down past the low of today’s daily pin bar.
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 Forex Price Action Trading Course Page Here.
In the currency markets today, speculators increased their bets on the U.S. dollar according to the latest data from the CFTC released today. The U.S. dollars overall long position rose to $10.13 billion this week, up from $6.23 billion last week.
The EURUSD closed today up modestly but ended well off the day’s high after sellers came into the market into the New York close.
The other major currencies were also up modestly against the greenback today but the rally is largely seen as counter-trend to an overall bullish U.S. dollar recently.
In the U.S. markets today, stocks ended their worst week in two months with most investors sitting out as they wait for more news to be released about the continuing debt problems in both the euro-zone and the U.S.
The Dow added 25.50 points, or 0.22 percent, the S&P 500 lost 0.48 point, or 0.04 percent, and the Nasdaq lost 15.49 points, or 0.60 percent.
Upcoming important economic announcements: 11/21/2011
10:00am EST: United States – Existing Home Sales
9:00pm EST: New Zealand – Inflation Expectations q/q