Forex Price Action Setups – AUDUSD Pin Bar Pops Higher – June 4th
AUDUSD
The AUDUSD pin bar setup that we mentioned yesterday in our weekly forex commentary gave a nice pullback entry and has popped higher. Depending upon your entry, a minimum profit of 2x your risk was available and many of our traders got in on this one and already booked profit. Although we have seen some signs the trend is weakening, because the trend is still down, and we have not seen a full structural confirmation it has ended, we are watching the .9850 area for price action triggers to possibly sell here if the bounce higher from the current level looks weak and corrective in nature. Traders should note the RBA has a rate meeting tomorrow which should provide some volatility post decision.
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Global Market Commentary:
The EURUSD took a brief reprieve from getting hammered lower by showing a modest bounce on the hopes of the Master Plan by many of the financial and political heads of Europe are working for solutions (read monetary easing) hitting the rounds today. The bounce looks a little meager, but the record number of IMM shorts leaves this trader only wanting to take pullbacks before getting short again for a potential nasty short squeeze could be around the corner.
Meanwhile, trouble in queen’s country is brewing with the UK getting a credit downgrade from AA to AA- from Egan Jones based on the weak growth, declining deficit to GDP and weak economic conditions. Remember, Europe going down affects the neighbors being the UK so this should continue to put pressure on Queen and Country.
Gold really has been the main benefactor as of late surging after friday’s dismal NFP report. With China gold imports out of Hong Kong increasing massively as of late, expect the shiny metal to be supported well into the $1550 region and a possible floor in place as it seems prime for another bull run if the price action structure can continue to build.
Upcoming Economic Announcements:
| AUD Current Account Balance (Australian Dollar) | 01.30GMT | 21.30EST |
| AUD Reserve Bank of Australia Rate Decision | 04.30GMT | 00.30EST |
| EUR German Purchasing Manager Index Services | 07.55GMT | 03.55EST |
| EUR Euro-Zone Retail Sales (YoY) | 09.00GMT | 05.00EST |
| EUR German Factory Orders n.s.a. (YoY) | 10.00GMT | 06.00EST |
| CAD Bank of Canada Rate Decision | 13.00GMT | 09.00EST |
| USD ISM Non-Manufacutring Composite | 14.00GMT | 10.00EST |
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