It was a bit of a strange day yesterday as the market was hesitant to trade and preferred to wait on direction from the New York session. Judging by the reaction in the US equity markets, the US like what they heard from President Trump as they traded to new highs. He did sound more presidential than what he has, he did stick to the script and he did soften his tone. I am still concerned that he has not given much detail yet into these ambitious policy plans.
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Dean's Daily FX Update – 02 March 2017
In the Zone
- EURUSD
- GBPUSD
- NZDUSD
- USDCAD
- USDJPY
Recap
Fed officials have been talking about a tighter monetary policy lately – you would expect this considering the extent of infrastructure spend mooted. The bonds clearly are on a rebalancing mission as the market is now pricing in a possible March interest rate hike. It almost seems as though the market believe that the US can spend without letting inflation get out of hand. None the less, the greenback continued its march yesterday as the world bought anything that was dollar based.
The EURUSD had a mixed day but in the end it eventually fell victim to the strong dollar. Our major resistance levels have definitely dropped in the last couple of days and the 200 hour MA represents first resistance at 1.0575. I think we may have some form of fightback this morning, but if this pair drops below 1.0510 (which it could easily do), the sellers will wreak havoc. A tighter FOMC and French election jitters could be the catalyst for this move.
The USDJPY is the pair most affected by raising bond prices and it was reflected in the price action yesterday. The pair did pierce above 114.00 before finding resistance, the 200 hour MA is trading at 113.50 this morning and if this pair is able to stay above this level then buyers will hold their long positions. A break below this level and I suspect that buyers could dump their positions and we could have a look below 113.00 again.
Daily Ranges 02/03/2017
Majors
EURUSD
Resistance 1.0580 – 1.0600
Support 1.0520 – 1.0500
GBPUSD
Resistance 1.2367 – 1.2400
Support 1.2290 – 1.2250
AUDUSD
Resistance 0.7690 – 0.7700
Support 0.7650 – 0.7620
NZDUSD
Resistance 0.7190 – 0.7210
Support 0.7130 – 0.7100
USDCAD
Resistance 1.3350 – 1.3380
Support 1.3260 – 1.3250
USDJPY
Resistance 114.20 – 114.50
Support 113.20 – 113.10
USDCHF
Resistance 1.0100 – 1.0120
Support 1.0050 – 1.0030
Rand
USDZAR
Resistance 13.1025 – 13.1330
Support 12.9720 – 12.9350
EURZAR
Resistance 13.7800 – 13.8120
Support 13.6855 – 13.6400
GBPZAR
Resistance 16.1250 – 16.1570
Support 16.0150 – 16.0000
Minors
AUDCAD
Resistance 1.0200 – 1.0230
Support 1.0160 – 1.0130
AUDJPY
Resistance 87.40 – 87.80
Support 86.50 – 86.30
EURCHF
Resistance 1.0670 – 1.0690
Support 1.0630 – 1.0610
EURGBP
Resistance 0.8570 – 0.8590
Support 0.8515 – 0.8490
EURJPY
Resistance 120.50 – 120.70
Support 119.30 – 119.10
GBPJPY
Resistance 140.30 – 140.50
Support 139.30 – 139.10
GBPCAD
Resistance 1.6400 – 1.6420
Support 1.6320 – 1.6300
GBPCHF
Resistance 1.2445 – 1.2460
Support 1.2400 – 1.2370
Indices
DE30
Resistance 12150 – 12350
Support 11930 – 11900
UK100
Resistance 7390 – 7410
Support 7320 – 7300
US500
Resistance 2400 – 2450
Support 2370 – 2350
US30
Resistance 21150 – 21200
Support 20950 – 20900
SA40
Resistance 44800 – 45000
Support 44200 – 44000
Commodities
BRENT
Resistance 56.70 – 57.00
Support 55.90 – 55.50
XAUUSD
Resistance 1250.00 – 1270.00
Support 1235.00 – 1225.00
XAGUSD
Resistance 18.30 – 18.50
Support 18.10 – 18.00
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