The dollar traded mixed against other major currencies Tuesday amid speculation that Greece will receive a second aid deal from its European neighbors, perhaps staving off the need to restructure its large debt.
The EURUSD gained ground today, consolidating within yesterday’s price range but forming a bullish pin bar rejection signal as well, indicating higher prices may be possible in the near-term.
The British pound lost ground to the greenback, as did the Japanese yen. The Canadian dollar and Australian dollar both gained on the greenback as commodities rallied.
Trading Setups / Chart in Focus:
The EURUSD formed a bullish inside pin bar setup today, this setup is in-line with the broader uptrend and has confluence with 1.4250 support, however given the recent intense selling pressure, we are unsure just how much fuel this uptrend has left in its tank.
A break of the mother bar high would be needed to trigger a long entry on this inside-pin bar, traders should make sure to always manage risk and reward effectively. For more on money management click here: risk reward and money management in Forex.
For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my Forex trading training website.
On Wall Street today stocks pushed higher for a third consecutive day, led by utilities and other defensive sectors which could be the catalysts for further gains as investors bet on profit growth and put aside worries about declining demand.
The Dow added 75.68 points, or 0.60 percent, the S&P 500 gained 10.87 points, or 0.81 percent, and the Nasdaq added 28.64 points, or 1.01 percent.
Upcoming important economic announcements: 5/11/2011
5:30am EST: Britain – BOE Gov King Speaks
5:30am EST: Britain – BOE Inflation Report
8:30am EST: Canada – Trade Balance
8:30am EST: United States – Trade Balance
9:30pm EST: Australia – Employment Change
9:30pm EST: Australia – Unemployment Rate
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