Forex Trade Signals (NY Close) Mar. 26th
USD Gets Hammered Thanks to Bernanke
So much for no more QE3. Bernanke gave the markets the juice they were looking for when he talked about the only way to reduce unemployment was to keep an easy and accommodative monetary policy in place. The markets jumped on these comments and stocks took off with the S&P jumping to its highest levels since May 2008 while the USD got hammered. Why? Pumping more USD’s into the market only devalues it further, so across the board, the USD got beat up against the G-8 countries (save for USD vs. JPY). Shoot – the Thai Baht gained against the USD today, even the Iraqi Dinar had an uptick on this, so this should tell you how this fared for the USD as the DOW jumped 160.90pts or 1.23% with the S&P up 1.39%.
USDCAD – Daily Pin Bar Comes Off Nicely
In our traders forum, many spotted this forex pin bar strategy on the daily chart coming in right at prior resistance which has held the upside for almost two months now. Many of our price action traders got in on this one and are now up almost 100pips on the day with stops brought to break even. Watch for price action triggers off the lows for this range coming in at .9860 and .9840. If these levels hold, there could be a potential price action setup to go long on this pair.
EURUSD – Dynamic Support Holds
After consolidating for most of last week, the EURUSD was held up by dynamic support and the daily 20ema as traders piled in long on the intraday pullback and sent this pair 150+pips higher as it took out the key resistance from last week. Price action is approaching resistance at 1.3400 and the yearly highs at 1.3480 so traders should watch for price action triggers at these levels for possible shorts. Any daily closes above here will likely add confidence to the bulls which could easily see the pair touch 1.3700 in the near term.
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