The U.S. dollar on Tuesday weakened to below 80 yen for a second straight day on Tuesday after Federal Reserve Chairman Ben Bernanke acknowledged a slowdown in the economy but offered no suggestion the central bank is considering any further monetary stimulus to support growth.
The euro EURUSD touched $1.4696, its highest level since early May, up from $1.4577 in late North American trading Monday. It was recently at $1.4687
Also Tuesday, the British pound GBPUSD rose to $1.6444 from $1.6353.
The Australian dollar lost a little ground after a statement from the nation’s central bank was interpreted as showing less inclination to increase interest rates in the future.
Trading Setups / Chart in Focus:
The Kiwi/Dollar has been strong lately, we can see last Friday it formed a bullish pin bar that rejected the dynamic support between the 8 and 21 day EMAs.
The recent post-float highs come in near 0.8262, price could re-test this resistance in the near term. A break above these highs would likely see further upside movement.
Note how well the inside pin bar setup from May 25th has worked out, this setup was discussed in our members’ daily commentary the day it formed. You could have let this one run and it’s a good example of why interfering with your Forex trades is a bad idea.
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.
On Wall Street today stocks fell lower for a fifth day in a row on the back of mounting concerns about the economy after bearish remarks from Fed Chairman Ben Bernanke.
The Dow dipped 19.15 points, or 0.16 percent, the S&P 500 lost 1.23 points, or 0.10 percent, and the Nasdaq lost 1.00 point, or 0.04 percent.
Upcoming important economic announcements: 6/8/2011
Tentative: Britain – Inflation Report Hearings
8:15am EST: Canada – Housing Starts
5:00pm EST: New Zealand – Official Cash Rate
5:00pm EST: New Zealand – RBNZ Press Conference
5:00pm EST: New Zealand – RBNZ Rate Statement
9:15pm EST: New Zealand – RBNZ Gov Bollard Speaks
9:30pm EST: Australia – Employment Change
9:30pm EST: Australia – Unemployment Rate