The GBPUSD tried to extend its recent rally today but ran into selling pressure as it approached the key resistance just below 1.5750 that we discussed in our August 20th commentary. The market reversed all gains today and ended the day slightly lower, forming a bearish pin bar trading strategy in the process. We could see the market rotate lower from today’s pin bar if price breaks down past the pin bar low, and the next key support is not seen until down around 1.5420 area.
The NZDUSD pin bar sell signal / false break strategy that we discussed in our August 19th commentary has resulted in another significant move lower today. Clearly, bears are in control here, as we can see the market sliced right through support at 0.7935 quite easily today and closed the day well below 0.7900. Most of us who traded this setup should now have made a very nice risk reward on this trade after today’s large sell-off, good job to all who traded it. Given the current strong bearish momentum, we could see the market re-test the key support down near 0.7700 before any significant retrace higher occurs.
View Fundamental Commentary & Upcoming Economic News ?Forex Commentary:
In the currency markets today, the U.S. dollar regained recent lost ground against the other majors on the back of news that the U.S. Federal Reserve is still planning on reducing its bond-purchasing program this year.
The greenback posted especially big gains against the New Zealand dollar, Australian dollar and euro today.
Other Markets:
In the U.S. markets today, stocks closed lower in what was a choppy trading session as minutes from the Federal Reserve’s July meeting did not provide many clues on a time frame for when it will start scaling-back its stimulus measures.
The Dow lost 105.60 points, or 0.70 percent, the S&P 500 dropped 9.51 points, or 0.58 percent, and the Nasdaq lost 13.80 points, or 0.38 percent.
Upcoming important economic announcements (New York time): 8/22/2013
3:00am EST: Euro-zone – French Flash Manufacturing PMI
3:30am EST: Euro-zone – German Flash Manufacturing PMI
8:30am EST: Canada – Core Retail Sales m/m
8:30am EST: United States – Unemployment Claims
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