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EURUSD recap and USDCAD fakey, 5th September 2011

Trading Setups / Chart in Focus:

EURUSD

The EURUSD lost ground for the 5th consecutive day today, falling lower into support between 1.4000 -1.4100. Price will need to close below 1.4000 to open the door for a larger move to the downside. With the daily 8 / 21 EMA’s crossed lower and diverging, we are slightly bearish biased and traders could watch for rotations higher back into the EMA resistance layer for price action sell signals.

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USDCAD

Last week in our members’ daily commentary we discussed a fakey pin bar strategy that formed off support through about 0.9750 that a long-tailed bearish pin bar had formed off of in early July. This price action setup has since moved higher in-line with the strong upward surge from late July / early August.

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Forex Commentary:

The euro fell broadly on Monday, hitting a one-month low versus the U.S. dollar as worries about Greek and Italian public finances and a regional election rout for Germany’s ruling party added to concerns about the euro zone debt crisis.

The single currency fell to $1.4060, its weakest since Aug. 5. A U.S. public holiday made for thinner trading conditions today.

The higher-yielding Australian and New Zealand dollars fell 1 percent against the dollar as Friday’s soft U.S. employment data fuelled concerns that the U.S. economy may be sliding back into recession.

Other Markets:

Gold prices topped $1,900 an ounce on Monday as worries about slowing growth and European debt whetted appetite for the metal’s perceived safe haven.

Demand for bullion gained as U.S. stock-index futures and European equities fell.

A weak U.S. jobs report Friday also helped bolster the case for gold, which finished up $47.80, or 2.6%, to $1,876.90 an ounce on the Comex division of the New York Mercantile Exchange

Upcoming important economic announcements: 9/6/2011

12:30am EST: Australia – Cash Rate
12:30am EST: Australia – RBA Rate Statement
10:00am EST: United States – ISM Non-Manufacturing PMI
9:30pm EST: Australia – GDP q/q
Tentative: Japan – Monetary Policy Statement
Tentative: Japan – Overnight Call Rate