Forex Price Action Setups – EURUSD Outside Bar Setup Plays Out – July 16th

As we wrote about yesterday in the weekly market commentary, the EURUSD formed an outside bar and combined with out ichimoku analysis, communicated a bounce was the most probable scenario.  This is exactly what played out today as the market pulled back today into the outside bar, but made a short term higher low suggesting the presence of buyers are still there from the outside bar while forming a daily pin bar. Both our ichimoku and price action traders took advantage of this setup and made some solid intraday pips so hopefully you did the same.

For sellers, you can look for price action triggers around 1.2390 while bulls will have to wait for a corrective pullback just sub 1.2200 to add longs.

outside bar pin bar price action july 16th

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Global Market Commentary:
Ahead of Bernanke’s upcoming speech, short covering on the Euro along with investor optimism help lifted the Euro, the aussie and a few other risk assets as the weak US retail sales gave global investors the idea stimulus is more likely if the US economy worsens.   Amazing how bad news gives investors hope the central banks will artificially inflate the markets.  That plus the RBA not cutting rates gave traders confidence in risk assets as they did not have to do more to support the Australian economy.  Also a conundrum if you think about it.

Meanwhile, Oil and Gold trotted in place while the Dow lost 49pts or .39%.

Upcoming Economic Events:

GBP Core Consumer Price Index (YoY) 08.30GMT 04.30EST
EUR German ZEW Survey (Economic Sentiment) 09.00GMT 05.00EST
USD Consumer Price Index (YoY) 12.30GMT 08.30EST
CAD Bank of Canada Rate Decision 13.00GMT 09.00EST
USD Fed’s Bernanke Delivers Monetary Policy Report to Senate 14.00GMT 10.00EST

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