This morning’s report is a little shorter as the dollar tumbled in the New York session last night. Despite the endless strong data out of the US and the news filtering through that we are going to see more rate hikes this year than expected, let this be a cautionary warning, don’t bank on it.
We also have Non-Farm Payroll numbers out this afternoon.
Dean's Daily FX Update – 06 January 2017
In the Zone
- All
Noteworthy News
- Saudi Arabia cut oil production to fully implement OPEC pledge, this is quite big as the oil producing countries are notorious of not adhering to policy. Keep an eye on both oil and the USDCAD.
Recap
This morning’s report is a little shorter as the dollar tumbled in the New York session last night. Despite the endless strong data out of the US and the news filtering through that we are going to see more rate hikes this year than expected, let this be a cautionary warning, don’t bank on it.
It is still early on in the year and so I don’t think that yesterday was a sign of positional trading or formation of trends for the year – most traders will only get back into the office next week. As we discussed last week, trading is more dominated by trade flow rather than technical or fundamentals.
All our major pairs moved to their extremes today and hence the reason for more a more detailed video, oil continues to be volatile and that is the reason that I am sticking out of oil for now. It seems as though news is driving oil rather than anything else.
It has already been a tough year for the USD bulls but we were expecting this correction, keep in mind that we have non-farm payroll data in the US released today and so as per usual I will not be trading. It is still early days in the year and for now I would encourage those to keep their stop losses tight, and for those of you running profitable trades make sure that you protect those profits today – with light liquidity and the possibility of a number that misses the mark, anything can happen.
We had a good week and I hoping that we return to something that resembles normal market conditions on Monday. Perhaps the “shake out” yesterday is creating an opportunity for next week.
Daily Ranges 06/01/2017
Majors
EURUSD
Resistance 1.0580 – 1.0600
Support 1.0510 – 1.0500
GBPUSD
Resistance 1.2400 – 1.2450
Support 1.2315 – 1.2300
AUDUSD
Resistance 0.7320 – 0.7350
Support 0.7280 – 0.7260
NZDUSD
Resistance 0.7015 – 0.7020
Support 0.6977 – 0.6950
USDCAD
Resistance 1.3285 – 1.3300
Support 1.3218 – 1.3200
USDJPY
Resistance 116.60 – 116.95
Support 115.50 – 115.20
USDCHF
Resistance 1.0190 – 1.0200
Support 1.0106 – 1.0100
Rand
USDZAR
Resistance 13.6950 – 13.7265
Support 13.5715 – 13.5250
EURZAR
Resistance 14.4350 – 14.4600
Support 14.2810 – 14.2540
GBPZAR
Resistance 16.8977 – 16.9500
Support 16.7330 – 16.6760
Minors
AUDCAD
Resistance 0.9713 – 0.9723
Support 0.9680 – 0.9667
AUDJPY
Resistance 85.28 – 85.40
Support 84.60 – 84.20
EURCHF
Resistance 1.0720 – 1.0740
Support 1.0690 – 1.0670
EURGBP
Resistance 0.8530 – 0.8540
Support 0.8480 – 0.8450
EURJPY
Resistance 122.80 – 123.00
Support 122.25 – 122.18
GBPJPY
Resistance 143.70 – 144.00
Support 142.90 – 142.70
GBPCAD
Resistance 1.6460 – 1.6490
Support 1.6367 – 1.6350
GBPCHF
Resistance 1.2567 – 1.2600
Support 1.2500 – 1.2490
Indices
DE30
Resistance 11600 – 11650
Support 11500 – 11440
UK100
Resistance 7200 – 7250
Support 7120 – 7100
US500
Resistance 2260 – 2280
Support 2240 – 2232
US30
Resistance 19900 – 20000
Support 19750 – 19700
SA40
Resistance 44800 – 45000
Support 44000 – 43800
Commodities
BRENT
Resistance 57.20 – 57.50
Support 56.00 – 55.80
XAUUSD
Resistance 1170.09 – 1185.00
Support 1158.00 – 1153.20
XAGUSD
Resistance 16.60 – 16.80
Support 16.28 – 16.00
Important Economic Data out today
- 15:30 CAD Employment Trade
- 15:30 CAD Trade Balance
- 15:30 CAD Unemployment Rate
- 15:30 USD Average Hourly Earnings
- 15:30 USD Non-Farm Employment Change
- 15:30 USD Unemployment Rate
- 15:30 USD Trade Balance
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