GBPUSD fakey-pin bar recap, 12th April 2011
Forex Commentary:
The Japanese yen and Swiss franc gained about 1 percent against the U.S. dollar on Tuesday amid heightened risk aversion due to Japan’s nuclear crisis and a slide in U.S. stocks.
The move into safe havens forced many investors to unwind carry trades, strengthening the yen and also bolstering the Swiss franc.
The yen rose for a fourth consecutive session against the dollar, partly retracing 10 consecutive days of losses. The Swiss franc also advanced for a fourth straight day against the greenback.
The euro rose above $1.45 to a 15-month high against the dollar today, boosted by reports of buying from China and news the world’s second largest economy was willing to purchase more Spanish government debt.
Trading Setups / Chart in Focus:
GBPUSD
The GBPUSD fakey-pin bar strategy that we discussed yesterday has come off nicely to the downside, providing a reward of about two times risk already. As we discussed yesterday this setup formed showing rejection of the significant resistance level near 1.6400 and was also a well-defined price action setup.
We can see two obvious support levels coming up soon, one near 1.6150 and the other one down near 1.5975 that could cause price to bounce higher. Anyone still short should watch these support areas closely.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my price action trading course.
Other Markets:
On Wall Street today stocks fell lower on the back of worries that falling oil prices could set off a reversal in the recent strength seen in the energy sector.
The S&P Energy Index was down 3 percent as energy stocks led the S&P 500’s losses.
The Dow lost 117.53 points, or 0.95 percent, the S&P 500 dropped 10.30 points, or 0.78 percent, and the Nasdaq dropped 26.72 points, or 0.96 percent.
Upcoming important economic announcements: 4/13/2011
4:30am EST: Britain – Claimant Count Change
8:30am EST: United States – Core Retail Sales m/m
8:30am EST: United States – Retail Sales m/m
10:30am EST: Canada – BOC Monetary Policy Report
11:15am EST: Canada – BOC Press Conference
1:00pm EST: Australia – RBA Gov Stevens Speaks
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