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EURUSD inside bar and USDJPY pin bar, 9-3-10

The EURUSD formed an inside bar yesterday that we posted up in our member’s forum shortly after it closed out. The inside bar came off to the upside today as anticipated. We are not sure how much gas the EURUSD has left in its tank, it might consolidate for a while before pushing higher and trying to challenge the overhead resistance near 1.2930 which is a pretty obvious level. We would need to see this level reclaimed and steady bullish trend development if this pair is going to test the July highs.

Note the EURUSD recently made a 50% retracement of the move from the June low of 1.1876 to the August high of 1.3333.

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USDJPY:

The USDJPY formed a bearish pin bar today in the context of the dominate downtrend, this is definitely one to keep on the radar as a possible short.

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For a more in-depth analysis of the major forex currency pairs and price action analysis, please check out my forex trading course.

Commentary:

Safe-haven U.S. government debt fell for a third day in a row as traders saw the odds of a “double dip” recession lessening. The U.S. dollar ended lower against most of the other major currencies today but did manage to gain modestly on the Swiss franc and Japanese yen.

The Canadian dollar and New Zealand dollar strengthened significantly today with the euro, British pound, and Australian dollar close behind. The CHF, JPY, and USD were today’s weakest of the major currencies.

The Dow rose 2.9 percent for the week, the S&P 500 rose 3.8 percent, and the Nasdaq added 3.7 percent for the week.