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Dean's Daily FX Update – 05 June 2017
In the Zone
- EURUSD
- NZDUSD
- USDCHF
- USDJPY
Noteworthy News
- 4 Middle East countries including Saudi Arabia and UAE have cut ties with Qatar this morning, stating that Qatar are backing terrorist activities. The fact that this comes a week after President Trumps visit cannot be a coincidence. Oil has not been affected yet but I would keep an eye on the oil price.
Recap
The weekend was dominated yet again by a terrorist attack in the UK, this time in London and the take away I took from it was listening to the statement made by PM Theresa May. Her stance was rather strong if you consider recent events across Europe – her message of “enough is enough” was especially symbolic, perhaps the UK will start taking a more proactive stance on terrorism. This has given the UK general election on Wednesday a little more significance (not that it needed it), the latest polls are predicting a hung parliament but this could go to the wire. The EU will be watching with a little bit of anxiety, if PM May is able to win with a majority, she seems like she is ready to make sweeping changes.
There was an expected gap opening last night as Asia opened for the week, there was a small fall in the GBPUSD and a gain for the JPY. This gap has for the most part been covered already and much like the Brexit referendum last year, GBPUSD continues to trade in a range bound nature. The range looks to extend between 1.2950 on the top side and 1.2820 on the down side. Considering the stakes of this election, I am making a conscious decision to stay out of both the GBP and EUR pairs for now.
The AUDUSD was the big mover this morning as inventory data came in a lot better than expected. This is a big week for the AUD with both the RBA meeting tomorrow and GDP data release on Wednesday, the inventory data this morning is a direct input into GDP and so the market are now starting to price in a better than expected GDP number later in the week. I would consider a trailing stop strategy if I were already in this pair.
With all the event risk this week and next week, the NZDUSD is the pair that I am earmarking as the one with possible opportunity this week. Unfortunately this morning we have New Zealand, Switzerland, Germany and France enjoying a bank holiday and so I will have to wait for the London and New York session to dictate direction today.
Daily Ranges 05/06/2017
Majors
EURUSD
Resistance 1.1270 – 1.1290
Support 1.1220 – 1.1200
GBPUSD
Resistance 1.2880 – 1.2900
Support 1.2820 – 1.2800
AUDUSD
Resistance 0.7460 – 0.7480
Support 0.7400 – 0.7380
NZDUSD
Resistance 0.7130 – 0.7140
Support 0.7080 – 0.7070
USDCAD
Resistance 1.3510 – 1.3530
Support 1.3460 – 1.3440
USDJPY
Resistance 111.00 – 111.20
Support 110.50 – 110.30
USDCHF
Resistance 0.9690 – 0.9710
Support 0.9640 – 0.9620
Rand
USDZAR
Resistance 12.9300 – 12.9750
Support 12.8270 – 12.7950
EURZAR
Resistance 14.5550 – 14.5800
Support 14.3540 – 14.3000
GBPZAR
Resistance 16.6580 – 16.6960
Support 16.4160 – 16.3660
Minors
AUDCAD
Resistance 1.0060 – 1.0090
Support 0.9990 – 0.9980
AUDJPY
Resistance 82.80 – 83.00
Support 82.30 – 82.10
EURCHF
Resistance 1.0890 – 1.0900
Support 1.0850 – 1.0830
EURGBP
Resistance 0.8760 – 0.8780
Support 0.8710 – 0.8700
EURJPY
Resistance 125.00 – 125.20
Support 124.45 – 124.25
GBPJPY
Resistance 143.30 – 143.50
Support 142.20 – 142.00
GBPCAD
Resistance 1.7400 – 1.7420
Support 1.7335 – 1.7310
GBPCHF
Resistance 1.2470 – 1.2490
Support 1.2390 – 1.2370
Indices
DE30
Resistance 12800 – 12850
Support 12720 – 12700
UK100
Resistance
Support
US500
Resistance 2440 – 2460
Support 2390 – 2380
US30
Resistance 21200 – 21400
Support 21000 – 20870
SA40
Resistance 47300 – 47500
Support 46400 – 46200
Commodities
BRENT
Resistance 50.70 – 50.90
Support 49.80 – 49.50
XAUUSD
Resistance 1280 – 1290
Support 1250 – 1230
XAGUSD
Resistance 17.40 – 17.60
Support 17.00 – 16.80
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