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EURUSD pushes higher, USDJPY breaks above 21 day EMA, 17th May 2011

Forex Commentary:

The euro gained against the dollar in choppy trading on Tuesday, but remains susceptible to losses related to how Greece might restructure its massive debt.

The GBPUSD recovered some of its losses stemming from an unexpectedly large increase in annual inflation that renewed speculation about the timing of the Bank of England’s interest-rate hike.

The Japanese yen remained under pressure today from official comments on the country’s economic outlook.

Trading Setups / Chart in Focus:

EURUSD

The EURUSD continued moving higher today after bouncing up from support near 1.4040 yesterday. Should this retracement higher continue, we could see a move back up towards resistance near the 21 day EMA or the horizontal level of 1.4500 before price heads lower again. We will watch for bearish price action strategies near these resistance areas for possible shorting signals.

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USDJPY

The USDJPY closed above its 21 day EMA, indicating momentum is bullish at least for the near-term. If the rally continues we are not seeing much resistance until about 82.80. Note the bullish rejection pin bar Forex strategy that formed last Friday.

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

Other Markets:

On Wall Street today stocks moved lower on the back of disappointing figures from Wal-Mart and Hewlett-Packard, however a late-day rally suggests investors might be looking for a short-term bounce.

The Dow dropped 68.79 points, or 0.55 percent, the S&P 500 lost only 0.49 of a point, or 0.04 percent, and the Nasdaq added 0.90 of a point, or 0.03 percent.

Upcoming important economic announcements: 5/18/2011

4:30am EST: Britain – Claimant Count Change
4:30am EST: Britain – MPC Meeting Minutes
2:00pm EST: United States – FOMC Meeting Minutes
7:50pm EST: Japan – Prelim GDP q/q
10:00pm EST: New Zealand – Annual Budget Release