Let me take this opportunity to welcome everyone back and wish you all a very successful 2017. As expected, there has been a bit of a slow start this morning as traders get back to their desks after the holidays. With the US markets open yesterday, there seems to be a little bit of indecision today and my charts are showing a little bit of conflict, I find that on days like this the longer time frames may be better to use but I will most probably see how the dust settles today before I take any large positions.
Dean's Daily FX Update – 03 January 2017
In the Zone
- None
Noteworthy News
- None
Recap
Chinese data came in a lot better than expected early this morning and this has been the catalyst for the commodity currencies to have a small run. It looks as though all major pairs have attempted to strengthen against the USD this morning, but it would be premature to think that these pairs won’t respect major support and resistance levels.
Both the EURUSD and USDCHF closed respective gaps from last week, but in the process have formed gaps in the opposite direction. I would expect those gaps to attempt to close before the market tries to determine where to next. The GBPUSD is little changed this morning, it did open fractionally higher but it is running out of steam.
The USDJPY is also little unchanged on the day thus far, this would be my preferred pair to trade today if it were not for a public holiday in Japan, which could be the reason for little price action this morning.
The AUDUSD squeezed higher this morning on the Chinese data and broke through 0.7200, we have some major resistance at 0.7230 – 0.7270 which needs to be broken for the bulls to get excited, anything lower than that and the sellers will be in control. The NZDUSD did go for the ride higher this morning but it is still a public holiday in New Zealand, so this move could prove to be misleading.
There is nothing in my zone this morning and I may have to wait another day or two as traders trickle back to their desks – it is hard to stay out the market after a prolonged absence. It is important to practice some patience today and not take positions out of excitement to be back, I will thus take trades off the higher time frames.
Daily Ranges 03/01/2017
Majors
EURUSD
Resistance 1.0540 – 1.0560
Support 1.0473 – 1.0450
GBPUSD
Resistance 1.2320 – 1.2350
Support 1.2270 – 1.2247
AUDUSD
Resistance 0.7240 – 0.7250
Support 0.7200– 0.7370
NZDUSD
Resistance 0.6974 – 0.6982
Support 0.6935 – 0.6920
USDCAD
Resistance 1.3475 – 1.3503
Support 1.3410 – 1.3387
USDJPY
Resistance 117.33 – 117.59
Support 116.44 – 116.30
USDCHF
Resistance 1.0230 – 1.0242
Support 1.0160 – 1.0140
Rand
USDZAR
Resistance 13.7517 – 13.7900
Support 13.6000 – 13.5710
EURZAR
Resistance 14.4378 – 14.4832
Support 14.3185 – 14.2866
GBPZAR
Resistance 16.9517 – 17.0400
Support 16.7371 – 16.6545
Minors
AUDCAD
AUDCAD
Resistance 0.9740 – 0.9760
Support 0.9697 – 0.9676
AUDJPY
Resistance 84.83 – 85.00
Support 84.10 – 84.03
EURCHF
Resistance 1.0733 – 1.0748
Support 1.0707 – 1.0690
EURGBP
Resistance 0.8568 – 0.8583
Support 0.8524 – 0.8513
EURJPY
Resistance 123.20 – 123.45
Support 122.45 – 122.18
GBPJPY
Resistance 144.40 – 144.64
Support 143.29 – 143.04
GBPCAD
Resistance 1.6585 – 1.6600
Support 1.6488 – 1.6460
GBPCHF
Resistance 1.2563 – 1.2590
Support 1.2500 – 1.2480
Indices
DE30
Resistance 11485 – 11500
Support 11405 – 11392
UK100
Resistance 7116 – 7140
Support 7069 – 7055
US500
Resistance 2253 – 2260
Support 2240 – 2232
US30
Resistance 19900 – 20000
Support 19750 – 19700
SA40
Resistance 44400 – 44500
Support 43700 – 43500
Commodities
BRENT
Resistance 57.10 – 57.30
Support 56.20 – 56.07
XAUUSD
Resistance 1160.09 – 1162.07
Support 1150.60 – 1145.20
XAGUSD
Resistance 16.17 – 16.23
Support 15.98 – 15.90
Important Economic Data out today
- 11:30 GBP Manufacturing PMI
- 17:00 USD ISM Manufacturing PMI
- Tentative NZD GDT Price Index
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