The euro rose to a four-month high versus the dollar on Wednesday and looked set to extend gains on growing expectations interest rates in the euro zone will rise earlier than those in the United States.
The Swiss franc soared to a record high versus the dollar as Libyan leader Muammar Gaddafi launched an offensive against rebels, sending investors to seek safety in the Swiss currency.
The U.S. currency has been unable to benefit from the recent spike in risk aversion amid political tensions in the Middle East and North Africa, prompting some investors to question whether the dollar has lost its safe-haven status.
Trading Setups / Chart in Focus:
The EURUSD broke out and closed above resistance at 1.3860 today as the inside bar setup from yesterday came off to the upside as expected. This sets the stage for a further push higher into resistance near 1.4000-1.4050 and possibly beyond that near 1.4280.
Yesterday, gold broke out from the inside bar that we discussed in our member’s area last week, pushing above the mother candle high and leading the precious metal to a new all-time high of $1440.30/oz today.
The GBPUSD pin bar setup discussed in yesterday’s commentary simply did not work out as price briefly rotated lower into the 8 day ema before getting bid higher and closing above resistance near 1.6300.
The pin bar discussed yesterday in the GBPJPY simply didn’t work out…
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my price action forex trading course.
On Wall Street today U.S. stocks edged higher despite more gains in oil prices as investors gave more weight to the latest economic data instead of rising energy costs.
The Dow gained 8.78 points, or 0.07 percent, the S&P 500 added 2.11 points, or 0.16 percent, and the Nasdaq gained 10.66 points, or 0.39 percent.
Upcoming important economic announcements: 3/3/2011
3:15am EST: Switzerland – Retail Sales y/y
4:30am EST: Britain – Services PMI
7:45am EST: Euro-zone – Minimum Bid Rate
8:00am EST: Britain – MPC Member Bean Speaks
8:30am EST: Euro-zone – ECB Press Conference
8:30am EST: United States – Unemployment Claims
10:00am EST: ISM Non-Manufacturing PMI