Trading Setups / Chart in Focus:
The GBPUSD pin bar Forex strategy that we discussed in yesterday’s commentary came off to the downside today in a very aggressive move.
Note that the last 3 pin bars which formed showing rejection of this same 1.6450 -1.6500 resistance level all worked out quite nicely. Given that the last 2 had worked, we knew this pin bar that formed yesterday at the same event area was a high probability price action trading setup.
I personally made over $3,500 on this setup and many of our member’s jumped on this pin bar and also profited. This is how we trade price action; we listen to the market by following what the price action and levels in the market are telling us.
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.
The euro fell to a session low of $1.4157 on Reuters data, down 1.93 percent, marking the biggest daily drop since August 2010. It last traded at $1.4177. Investor worries about Greece’s debt crisis and the effects a default would have on European banks sent the euro into a tailspin
The dollar index .DXY, which tracks its performance against a basket of currencies, was up 1.4 percent at 75.367, also the biggest one-day rise since early May.
In other currencies trading, the British pound GBPUSD slipped to $1.6174 from $1.6387 late Tuesday. The Australian dollar AUDUSD fell to $1.0575, compared with $1.069. The main news in the region stemmed from comments made by Royal bank of Australia Governor Glenn Stevens.
Against the Japanese yen, the dollar USDJPY rose to ¥80.95, compared with ¥80.49 late Tuesday.
On Wall Street today stocks lost significant ground on the back of rising Greek debt concerns, and poor U.S. data pointed to the potential for more losses ahead.
The Dow lost 178.84 points, or 1.48 percent, the S&P 500 dropped 22.45 points, or 1.74 percent, and the Nasdaq lost 47.26 points, or 1.76 percent.
Upcoming important economic announcements: 6/16/2011
3:30am EST: Switzerland – Libor Rate
3:30am EST: Switzerland – SNB Monetary Policy Assessment
3:30am EST: Switzerland – SNB Press Conference
4:30am EST: Britain – Retail Sales m/m
8:30am EST: United States – Building Permits
8:30am EST: United States – Unemployment Claims
10:00am EST: United States – Philly Fed Manufacturing Index