EURUSD at resistance, 27th January 2011
Forex Commentary:
The U.S. dollar jumped as much as 1.1% against the Japanese yen Thursday after Standard & Poor’s lowered its rating on Japan’s sovereign debt.
The dollar index, which tracks the U.S. unit against a basket of six other currencies, slipped back to 77.707 from 77.776 Wednesday.
Trading Setups / Chart in Focus:
EURUSD
The EURUSD is currently in an area of resistance that runs from about 1.3700 – 1.3800, price will need to break above this resistance to move higher from current levels, otherwise we may see a rotation back to value around the 8 or 21 day emas in the near-term.
We can see in the chart below that the 1.3430 area is now a significant support area, traders should keep an eye on this area for price action setups should price rotate back down into this support next week.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading education website.
Other Markets:
On Wall Street today the Dow came up short of 12,000 again as mixed economic data and corporate earnings found the market struggling to find a directional bias.
The Dow closed up 4.39 points, or less than 0.1%, the S&P 500 closed up 2.91 points, or 0.2%, and the Nasdaq gained 15.78 points, or 0.6%.
Upcoming important economic announcements: 1/28/2011
5:30am EST: Switzerland – KOF Economic Barometer
8:30am EST: United States – Advance GDP q/q
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