Forex Price Action – USDINX Trade Update | Sept. 27th

Verified Profitable Trader

As I wrote about two days ago, the USDINX was in a corrective pullback phase, and one should not expect USD strength to continue.  On the next day, the EU, GU, AU and NU all closed higher and continued those gains today.  As mentioned in my post, the best play was to look for a short off the dynamic resistance and daily 20ema at the 80.00 figure.  Playing out as expected, it went only 1.3pts above 80, then rejected off the daily 20ema, following it up today with a second touch off the 20ema and further selling.

Today’s selling was the most aggressive thus far, and the first day in nine that price action closed below the lows of the prior day.  This could lead to a new wave of USD strength to end the week.  At best, I suspect one more attack on the upside is possible, so will be happy to short at the aforementioned levels again, looking for a medium term target of 78.75

dynamic resistance corrective price action usdinx sept 27th

For those wanting to learn price action trading, get access to the traders forum, lifetime membership & more, visit my forex price action course page here.

Global Market Commentary:
Most of the big news today was centered around Spain which announced a timetable for its badly needed economic reforms including spending cuts and less tax increases, along with a plundering of social security benefits to plug some current shortfalls which may have something to do with the massive protests in Spain.  Spanish 10yr yields are still above 6% which will continue to pressure the large EZ economy needing a bailout in the near future.

Ironically, later in the day Egan Jones cut its ratings from CC+ to CC which may accelerate bailout plans as the situation deteriorates further.

The Euro rallied from the daily 200sma to close strongly higher, up 100pips off the lows while Gold, Silver and Oil all gained on the day with Gold up about $19, and Oil up over $2.

Upcoming Economic Announcements:

CNY Leading Index 20.00EST
AUD Private Sector Credit (YoY) 21.30EST
CNY HSBC Manufacturing PMI 22.30EST
EUR French Gross Domestic Product (YoY) 01.30EST
EUR German Retail Sales (YoY) 02.00EST
EUR Euro-Zone Consumer Price Index Estimate (YoY) 05.00EST
CAD Gross Domestic Product (YoY) 08.30EST
USD Personal Consumption Expenditure Core (YoY) 08.30EST
USD U. of Michigan Confidence 09.55EST

Make sure to check out my newest articles:
Setups, Price Action & Context
Price Action Angles – Trading Forex Price Action
Daily and 4hr Price Action Strategies

Want More? My private members get all my trade ideas & market commentary 4x per week. Click here to become a member.

Related Article