Forex Trade Setups

Euro gains on action from central banks, 30th November 2011

Trading Setups / Chart in Focus:

EURUSD
The EURUSD pushed dramatically higher today as major central banks around the world collaborated to help ease the mounting pressure of the euro-zone debt crisis. This worked to ignite fresh risk appetite and as a result global markets soared.

The EURUSD gained about 130 pips over yesterday’s close. We can see resistance coming in near the horizontal level at the 1.3600 – 1.3650 area. Should price move higher we will keep an eye on this ‘core’ resistance for potential price action sell signals, but as of now we are sitting on our hands.
Forex Commentary:
In the currency markets today, the EURUSD pushed significantly higher as the central banks of the U.S., Euro-zone, Britain, Canada, Japan, and Switzerland, took collaborative action to ease pressure on European banks.
The EURUSD moved to $1.3440 in late-day New York trading, up from $1.3315 on Wednesday.
The U.S. dollar was lower against the other major currencies too. The GBPUSD moved to $1.5690 from $1.5594. The greenback moved to 77.54 yen from 77.91, the Australian dollar, New Zealand dollar, and Canadian dollar also posted significant gains against the U.S. dollar today.

Other Markets:
In the U.S. markets today, stocks rocketed dramatically higher with the Dow posting its best one day gain since March of 2009. The gains came after the U.S. Federal Reserve bank and other central banks extended help to banks affected by the euro-zone debt crisis.
The Dow gained 490.05 points, or 4.2%, the S&P 500 added 51.77 points, or 4.3%, and the Nasdaq rose 104.83 points, or 4.2%.

Upcoming important economic announcements: 12/1/2011
1st-7th: Britain – Halifax HPI m/m
4:30am EST: Britain – Manufacturing PMI
8:30am EST: United States – Unemployment Claims
10:00am EST: United States – ISM Manufacturing PMI