Today the USDCAD stormed higher, gaining about 150 pips in the process. We can see the catalyst for this recent bullish move was the pin bar reversal candle that formed off support on August 5th.
In the USDCAD commentary form 8/7 regarding this pin bar setup we discussed the possibility of prices pushing higher still. Our member’s got first notice of this bullish pin bar setup the day it formed in the member’s commentary.
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In the EURUSD commentary from 8/9 we discussed the possibility of lower prices as a result of this EURUSD inside bar near the strong resistance area at 1.3260.
Prices have come off substantially lower today and the EURUSD lost around 300 pips. Inside bars are great traded with the trend but they often can signal major reversals as we can see in the chart below.
The U.S. dollar was significantly stronger today along with the Japanese yen. The greenback gained ground on all the majors except the Japanese yen.
The Japanese yen was today’s big winner, dominating all the other majors and moving to a 15-year high against the U.S. dollar.
The Dow fell more than 240 points and all the major indexes fell more than 2 percent.