I trust everyone had a good day off yesterday and voted for their party of choice! Elections seem to have slightly strengthened the ZAR with the news of certain parties taking control in certain parts of South Africa.
Dean discussed on Tuesday the Forex Opportunities arising on the EURUSD and his preference to look at shorts around the 61.8 Fibonacci level. The EMA’s (exponential moving averages) were starting to turn, the stochastics were heavily over bought and the MACD was approaching the waterline. Also, some strong divergence and price action leading to a 100pip trade.
Dean's Daily FX Update – 04 August 2016
Dean is not interested in trading GBPUSD because of the BOE decision and the likely cut of interest rates down to 0.25%.
The AUDUSD is setting up for a short and entering into Dean’s region of interest. Completing the 100% Fibonacci and this is his FX pair to watch.
There was a nice move in his favour in the NZDUSD where a big level of resistance proved too strong for the currency pair to break and it quickly retraced the previous move up. Divergence and good price action with two pin-bars.
In the USDCAD, he was looking at shorts around the 68.1 Fib level and some good price action yielded about 50pips.
USDJPY is approaching the 100 level and starting to gain Dean’s interest.
Please be aware of the event risk with the BOE today and the Non-Farm Payrolls out tomorrow.
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