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AUDUSD recap, 22nd April 2011

Forex Commentary:

The dollar hovered near a three-year low against a basket of currencies on Friday, undermined by the spectre of low U.S. interest rates and the crushing weight of the U.S. budget deficit, with some players looking for it to test an all-time low when players return from the Easter holidays.

The euro fetched $1.4575, after hitting a 16-month high of $1.4649 on Thursday.

Dollar/yen traded at 81.84 yen, near a three-week low of 81.61 yen hit on Thursday.

The dollar also fell to a record low of 0.8782 Swiss franc on Thursday before settling down at around 0.8862 franc on Friday

Trading Setups / Chart in Focus:

AUDUSD

The AUDUSD put in a very strong week. Price consolidated on Friday in light holiday trading conditions following the explosive move earlier in the week as the pin bar strategy from Tuesday fired off.

We are seeing a near-term support level coming in around the 8 day EMA and the horizontal level of 1.0580. Should price rotate lower into this value-area next week we will keep a close eye out for bullish price action.

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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 trading course.

Other Markets:

On Wall Street Thursday U.S. stocks ended their first positive week out of the last three as strong earnings news continued to lift shares.

The Dow added 52.45 points, or 0.42 percent, the S&P 500 gained 7.02 points, or 0.53 percent, and the Nasdaq added 17.65 points, or 0.63 percent.

Upcoming important economic announcements: 4/25/2011

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