Dean was focused on three Forex pairs this morning. He saw opportunities in the NZDUSD, USDCAD and the USDJPY. He was avoiding the others as they were either very range bound or had failed miserably to maintain support.
The EURUSD has maintained a tight range today of 45 pips. We briefly traded up to Dean’s resistance of 1.1225 – 1.1238. We have traded lower this afternoon and currently trading 1.1195. Not on his radar as the range is too small and hoping for a significant break before taking another look.
Another weak day for Sterling and the GBPUSD pair is now well below Brexit levels. We have seen 1.2685 but are now slightly higher at 1.2735. Perhaps Dean’s support of 1.27 he mentioned this morning will hold and we will get a bounce from here. I would not hold my breath!
Dean was hoping the AUDUSD would trade up to 0.7660 so he could look for a short position. The rally only got to a high of 0.7644 before falling back to his support of 0.76. We are right there now after a low of 0.7592 so I think he may be looking for a reason to get long for a small move up. His preference is to be short but not at these levels.
The Kiwi (NZDUSD) was pretty range bound for most of the day. We took a quick look at 0.72 but that advance was quickly rebuffed. Dean was looking to go long the FX pair and we will see tomorrow if he got caught. From the price action there is nothing to suggest that he would have entered the market.
Dean was looking for shorts in the USDCAD today. The FX market was pretty flat in our resistance area for most of the day until the US Oil Inventory numbers came out at 4pm. The number showed a decline in inventories so the oil price has moved up nicely. The Loonie moved higher ahead of the release but has come off because the currency is so heavily linked to oil. I would be very surprised if Dean has changed his view on this one.
The USDJPY was the other forex trade Dean was looking at. He saw resistance at around 103 – 103.37. The market quickly blew through those levels and we are near the highs for the day at 103.50. I think he may go back to some older resistance closer to the 104 level but it is very overbought at the moment.
The market will be watching the Initial Jobless Claims in the US as a guide to what the NFP numbers will look like on Friday. These often give the market a bit of steer, so expect a little volatility around 14:30 SA time tomorrow.
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