Forex Price Action Setups (NY Close) May. 1st

USD Rallies, DOW Hits 4yr High on US ISM Data
Data today showed manufacturing grew in April which was its strongest print in 10mos appeasing fears the US economy was heading into troubled times.   In the process, the DOW closed up 65.69pts  or .5% and the S&Pgained 7.91pts or .57% regaining 1400 as well.

We would like to note Asia and London markets were thin with the May Day holiday so the reaction to the ISM could have been an over-reaction.

Meanwhile, British manufacturing had meager growth suggesting the EU economic slowdown is spreading.  While China’s manufacturing showed a strong print from their PMI,  Spain will continue to stain the presses and investors minds with an unemployment rate of 24.4%, retail sales declining for 21months in a row, and the total value of the bad loans the Spanish loans being equivalent to 13% of Spain’s GDP.

How long will the party last is a good question.  Either the delusional DOW will keep on climbing through money printing/new QE coming, or this rally is going to be sold into oblivion when all this hits the fan.

USDJPY – Forms Piercing Pattern, 80.30 Holds Upside
After a strong 3 day sell-off, the USDJPY has formed a bullish piercing candle.  The selling on the 2nd day in this move was the strongest, with solid selling on the 3rd day (monday).  But today, the pattern reversed a good portion of the losses from yesterday.  Today’s high rejected off the role reversal level of 80.30 which offers bears an intraday level to short, while bulls should wait for a break and hold above this level to get long, or look for a price action trigger around the 79.81 area looking to test the dynamic resistance at the daily 20ema above.

piercing candle price action forex trading 2ndskiesforex.com may 1st

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Upcoming Economic Announcements:

CNY HSBC Manufacturing PMI 02.30GMT 22.30EST
EUR German Unemployment Change 07.55GMT 03.55EST
EUR German Purchasing Manager Index Manufacturing 07.55GMT 03.55EST
GBP Purchasing Manager Index Construction 08.30GMT 04.30EST
USD ADP Employment Change 12.15GMT 08.15EST
USD Factory Orders 14.00GMT 10.00EST
NZD Unemployment Rate 22.45GMT 18.45EST

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I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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