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EURUSD and GBPUSD recap, 17th June 2011

Forex Commentary:

The euro gained ground against the dollar Friday as hopes grew for a bailout deal for Greece and fears eased that the country would default on its debt.

In afternoon trading Friday in New York, the euro rose to $1.4304 from $1.4201 late Thursday.

In other trading Friday, the dollar fell to 80.01 Japanese yen from 80.60 and rose to 0.8481 Swiss franc from 0.8474 Swiss franc. The British pound rose to $1.6177 from $1.6156.

The dollar was also trading lower against most other currencies around the world, including those in Australia, New Zealand, Hong Kong and Latin America.

Trading Setups / Chart in Focus:

EURUSD

Price moved higher off the EURUSD bullish pin bar that we discussed yesterday. We can see this pin bar was rejecting a significant level of support near 1.4050. Price has moved up into the next resistance near 1.4300 and closed near this level. We will need to see a sustained break above this resistance next week to open the door for more gains, otherwise a rotation lower from this resistance is possible.

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GBPUSD

The GBPUSD formed another bullish pin bar today, this time it formed an inside pin bar that is inside of the range of yesterday’s pin bar that we discussed. Whilst momentum has clearly turned lower, we could see a rotation higher into value before this market heads lower again. Watch the resistance near the 8 / 21 day EMA’s as a potential barrier.

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Other Markets:

On Wall Street today the Dow and S&P 500 rose after France and Germany outlined an agreement to aid debt-burdened Greece, however, analysts said that the recent bearish trend may have more room to fall.
The Dow added 42.84 points, or 0.36 percent, the S&P 500 rose 3.86 points, or 0.30 percent, and the Nasdaq lost 7.22 points, or 0.28 percent.

Upcoming important economic announcements: 6/20/2011

9:30pm EST: Australia – Monetary Policy Meeting Minutes