Trading Setups / Chart in Focus:
GBPUSD
The Sterling Dollar has been moving higher recently but we can see today it showed rejection of resistance near 1.6500, forming a pin bar and a fakey. This level has clearly contained price over the recent months, as we can see two previous bearish pin bars that gave way to significantly lower prices after rejecting this same resistance level. This setup is one to watch for next week, if price stays contained below 1.6500 we could see a larger move lower next week.
USDJPY
The USDJPY has been consolidating just above the core support level near 76.30 recently, today price dipped below this level but quickly got pushed higher. We may see further consolidation along this level before a strong directional move occurs, but for now it?s worth noting the false-break to the downside and the significance of this support.
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Forex Commentary:
The U.S. dollar plumbed a record low against the yen and weakened against the euro on Friday, but respite may be in sight for the greenback if the global economic landscape gets gloomier and feeds a safe-haven bid.
The dollar fell against the yen on Friday by a Wall Street Journal report cited Japan?s top currency official saying Japanese authorities do not plan to intervene often.
The dollar smashed through its previous record low of 76.25 set in March to fall below 76 yen. The dollar later rebounded to trade 0.1 percent lower at 76.48 yen, marking a 5.8 percent loss so far this year.
In late afternoon New York trading, the euro was up 0.4 percent against the dollar on the day at $1.4392
Other Markets:
On Wall Street today stocks ended a fourth consecutive week of losses on a sour note as buyers were scarce due to growing fears of another U.S. recession and fragility in Europe?s financially sytem.
The Dow lost 172.93 points, or 1.57 percent, the S&P 500 lost 17.12 points, or 1.50 percent, and the Nasdaq dropped 38.59 points, or 1.62 percent.
Upcoming important economic announcements: 8 /22/2011
11:00pm EST: New Zealand ? Inflation Expectations q/q
Source: http://www.fxstreet.com/technical/forex-strategy/forex-trade-setups-commentary/2011-08-20.html
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