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AUDUSD pin bar, 19th April 2011

Forex Commentary:

The euro rebounded against the U.S. dollar on Tuesday as strong economic data reassured markets about growth in major euro zone countries even as fears mount that Greece may have to restructure its debt.

The data showing April business activity in Germany and France outpaced the 15 other euro-zone countries helped drive the euro higher, one day after it suffered its biggest one day loss in five months.

The U.S. dollar fell 0.1 percent to 82.51 yen, and slipped 0.8 percent to $0.9562 Canadian dollars after Canada’s inflation rate hit a 2-1/2-year high in March, ratcheting up pressure on the Bank of Canada to raise interest rates.

The AUDUSD was trading at $1.0517, near 29-year highs. Australia’s high benchmark interest rate and its role as a raw materials supplier to a booming Chinese economy have increased its appeal.

Trading Setups / Chart in Focus:

AUDUSD

The AUDUSD formed a bullish pin bar setup today, showing rejection of the dynamic support between the 8 and 21 day EMAs. Should resistance near 1.0580 break, we could see another leg to the upside in this up-trending market.

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For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my price action forex course.

Other Markets:

On Wall Street today U.S. stocks rose on the back of positive results from health care and materials companies, however, weak earnings from Goldman Sachs limited gains.

The Dow added 65.16 points, or 0.53 percent, the S&P 500 added 7.48 points, or 0.57 percent, and the Nasdaq gained 9.59 points, or 0.35 percent.

Upcoming important economic announcements: 4/20/2011

4:30am EST: Britain – MPC Meeting Minutes
10:00am EST: United States – Existing Home Sales
9:30pm EST: Australia – PPI q/q