Forex Price Action – Kiwi Forms Pin Bar Setup off Support | Sept. 20th
After pulling back from its rejection at .8350, the Kiwi formed a large with trend pin bar off a major role reversal level today. What is interesting is how the day started off very bearish for the pair, which reversed gains sharply after touching the key role reversal level at .8210 and closed up on the day. I suspect higher prices for the Kiwi, but am looking for one more intraday pullback to get long. I’ll take a buy off any pullback towards .8230-.8215 with tight stops below targeting the recent swing highs at .8350 offering up a nice 3/4:1 reward to risk play so a decent catch out there. Bears can watch .8350 on the intraday charts for weakness to short the pair targeting today’s lows.
Global Market Commentary:
Global stocks fell, moreso in Asia than in Europe and the US where they fell more moderately. The big news pieces were Chinese and EuroZone manufacturing data declined which soured investor sentiment. The US manufacturing market also showed poor numbers with its weakest quarterly rate in 36months. Also in the EuroZone, Italy revised its 2012 GDP to -2.4% from -1.2% which is 2x as worse along with its 2012 debt at 126.4% of GDP and next year at 127.1% of GDP.
Keep in mind, Italy is the 6th largest bond market in the world and one of the top 3 economies in the EuroZone.
The Dow gained 19pts while the S&P lost 1pt. Gold mostly trotted in place closing around $1769.
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