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Forex Trade Setups Commentary: Gold pin bar / false break, 13th December 2010

Forex Commentary:

The U.S. dollar extended losses today, giving up early session gains against the euro, Japanese yen and British pound as a result of U.S. stock and commodities gaining ground on strong Chinese economic data and Beijing’s unexpected decisions to stand firm on interest rates.

The dollar index, which is a measure of the greenback’s performance against a basket of six other major currencies, moved lower to 79.28 from 80.067 in late trading on Friday.

Trading Setups / Chart in Focus:


Gold moved higher today, breaking past the high of Friday’s pin bar / false break setup. It looks the gold bull could be getting ready to rise up again and push prices higher to re-test the recent all-time highs near 1430.90.

The setup from Friday occurred at a confluent level near the dynamic support of the 8 and 21 day emas along with a horizontal support level near 1380.


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Other Markets:

On Wall Street today the Nasdaq closed down and put an end to eight consecutive days of gains, the Dow and S&P 500 ended today’s session flat as optimism faded over China’s move to slow its growth.

The Dow added 18.24 points, or 0.16 percent, the S&P 500 added 0.06 of a point, or 0.00 percent, and the Nasdaq lost 12.63 points, or 0.48 percent.

Upcoming important economic announcements: 12/14

4:30am EST: Britain – CPI y/y
5:00am EST: Euro-zone – German ZEW Economic Sentiment
8:00am 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
2:15pm EST: United States – FOMC Statement
2:15pm EST: United States – Federal Funds Rate
6:50pm EST: Japan – Tankan Manufacturing Index