There is a dollar holiday today because the US are enjoying Labor Day. We may see reduced liquidity and the ranges may be tighter as forex traders are less inclined to take big positions without the US involved.
Dean's Daily FX Update – 05 September 2016
In the EURUSD, we are at some fairly critical short term levels with some previous support at 1.1190 and a 200 day MA which sits just below where we are trading at 1.1166. Our 61.8% Fib is also in this area so Dean is watching carefully how price reacts at these levels. Waiting for the stochastics to get to the bottom and waiting for it to turn.
The Aussie is maintaining some strength against the USD and Dean sees a move up towards our previous support level 0.7626 where he will look to establish shorts again. One to be a bit patient with but sees this playing out later this week.
The Kiwi has been making regular attempts to break though year-long highs around 0.7325. Each time it has been knocked back and unless it can break this level with some conviction then there is every chance we will get a decent pull-back.
The CAD is also on holiday today but has seen some reasonable strength since Friday. Dean missed the opportunity to get short but now contemplating longs if we can get an extension down to the 1.2830-50 level. Looks like stochastics are starting to turn.
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