EURUSD and Gold recap, 8th April 2011
Seeking Alpha Analyst Since 2010
Forex Commentary:
The euro rose to a 15-month peak versus the dollar on Friday, on pace for a gain of 1.7 percent this week. The prospect of a U.S. government shutdown, which would idle about 800,000 federal government workers and put a crimp in the economic recovery, weighed on the dollar.
Speculators cut bets in favor of the yen this week, going short the Japanese currency by the biggest margin in nearly a year, data showed on Friday, and built up a record long position in the Australian dollar.
The Australian dollar rose to $1.0552, its highest level versus the greenback since it was floated in December 1983. The aussie has benefited from strong domestic economic growth, staving off the malaise of the rest of the developed world in recent years, fueled in large part by exports of raw materials to China.
Trading Setups / Chart in Focus:
EURUSD
The EURUSD pushed higher today and broke out from yesterday’s inside pin bar setup which we discussed in the member’s commentary last night.
We can see this chart has been very strong lately, the inside-pin bar trading strategy from March 30th has provided price action traders with some serious gains, moving about 300 pips to the upside since it broke higher.
Gold – 4hr chart
The 4hr gold chart fired off a very nice pin bar strategy on April 1st that has since moved significantly higher. This was a well-defined pin bar that formed in the direction of the dominant trend and had rejected an obvious support level.
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.
Other Markets:
On Wall Street today stocks fell late after a spike in oil prices revived concerns that inflation would derail the recovery. Also, the uncertain budget talks in Washington and the prospect of a U.S. government shutdown spurred investors to buy safety ahead of the weekend.
The Dow lost 29.59 points, or 0.24 percent, the S&P 500 lost 5.36 points, or 0.40 percent, and the Nasdaq lost 15.73 points, or 0.56 percent.
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