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EURUSD support, Gold fakey, 24th May 2011

Forex Commentary:

The euro pulled away from a two-month low against the dollar on Tuesday after better-than-expected German data, but traders said fears about Greece’s finances and Europe’s spreading debt crisis continue to cast a long shadow of doubt.

One day after hitting a two-month low of $1.3968, the euro rose as high as $1.4133 after a report showed German business sentiment was firmer than expected in May. It was last trading at $1.4102

Against the yen, the dollar fell 0.1 percent to 81.85 yen. The dollar index, which measures the greenback against a basket of currencies, slipped 0.2 percent to 75.933 .DXY, near a seven-week high set on Monday.

The New Zealand dollar rose 0.8 percent to $0.7977 after a quarterly survey showed inflation expectations rose in the second quarter.

Trading Setups / Chart in Focus:

EURUSD

The EURUSD formed an inside bar today off support at 1.4000. The 1.4000 is a key horizontal and psychological support level that price will need to break down through to establish another leg lower. Resistance comes in near the 21 day EMA and horizontal level of 1.4350.

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Gold

The gold market pushed higher today and closed right at resistance near $1526.00. We can see in the chart below a bullish fakey forex strategy tipped price action traders off to this recent push higher. Should price break above $1526.00, we could see higher prices and a potential retest of the all-time high resistance near $1575.00.

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

Other Markets:

On Wall Street today U.S. stocks lost ground in light volume as fears lingered about slowing growth, this more than offset gains in energy shares.

Gold miners’ stock rose as bullion moved to its highest price in about three weeks as concerns persisted about a growing debt crisis in the euro zone.

The Dow lost 25.05 points, or 0.20 percent, the S&P 500 lost 1.09 points, or 0.08 percent, and the Nasdaq lost 12.74 points, or 0.46 percent.

Upcoming important economic announcements: 5/25/2011

4:30am EST: Britain – Revised GDP q/q
8:30am EST: United States – Core Durable Goods Orders m/m
9:30pm EST: Australia – Private Capital Expenditure q/q