Donald Trump seemed to have the magic touch for the best part of the year, it seemed as though everything he said – regardless of how eccentric, was just what the people wanted to hear. For the first time we are starting to hear chatter of low confidence in Trump by his own camp, and this could be evident in the weak bond rates and increasing volume into gold.
Dean's Daily FX Update – 07 February 2017
In the Zone
- EURUSD
- GBPUSD
- USDJPY
Noteworthy News
- We are seeing comments from the Bank of France about the consequences of leaving the EU, considering that we have French elections this year, could we have another Brexit on our hands?
Recap
Despite the ECB testifying that support for monetary policy is still needed, the EURUSD has managed to find some support at 1.0700 for yet another day. This will be a key level moving into today and if we are able to stay above this level, it will be bullish. On the topside, the 100 hour MA at 1.0780 is still the major resistance for now.
As anticipated, the commodity currencies were where we found some opportunity yesterday. The USDCAD weakened significantly yesterday, and although the oil was slightly weaker there was no real catalyst for the level of weakness. From a technical level the pair moved above the 100 hour MA and the buyers came in on mass, the buying did not abate until we got to 1.3130 which also represents the 200 day MA. Today traders will be watching 1.3075, which was support last week, if we are able to hold then the market could have another test of the 1.3150.
Both the AUDUSD and NZDUSD attempted to trade lower yesterday, but liquidity did start to dry up leading into the evening session. We had major event risk in the form of RBA Rate decision in Australia and inflation data in NZ. Both pairs subsequently found something positive from the data and have strengthened, these are the pairs that I will look for opportunity later tonight or tomorrow.
Daily Ranges 07/02/2017
Majors
EURUSD
Resistance 1.0790 – 1.0820
Support 1.0700 – 1.0670
GBPUSD
Resistance 1.2560 – 1.2580
Support 1.2430 – 1.2410
AUDUSD
Resistance 0.7680 – 0.7700
Support 0.7640 – 0.7610
NZDUSD
Resistance 0.7355 – 0.7370
Support 0.7290 – 0.7270
USDCAD
Resistance 1.3129 – 1.3145
Support 1.3024 – 1.3010
USDJPY
Resistance 112.60 – 112.80
Support 111.80 – 111.50
USDCHF
Resistance 0.9950 – 0.9970
Support 0.9900 – 0.9885
Rand
USDZAR
Resistance 13.3800 – 13.4200
Support 13.2600 – 13.2230
EURZAR
Resistance 14.3630 – 14.4050
Support 14.2520 – 14.2370
GBPZAR
Resistance 16.6600 – 16.6930
Support 16.5170 – 16.4250
Minors
AUDCAD
Resistance 1.0050 – 1.0070
Support 0.9920 – 0.9900
AUDJPY
Resistance 86.10 – 86.30
Support 85.40 – 85.20
EURCHF
Resistance 1.0700 – 1.0720
Support 1.0640 – 1.0620
EURGBP
Resistance 0.8630 – 0.8660
Support 0.8570 – 0.8520
EURJPY
Resistance 121.30 – 121.50
Support 119.50 – 119.00
GBPJPY
Resistance 141.10 – 141.40
Support 139.30 – 139.00
GBPCAD
Resistance 1.6420 – 1.6440
Support 1.6240 – 1.6215
GBPCHF
Resistance 1.2460 – 1.2490
Support 1.2377 – 1.2350
Indices
DE30
Resistance 11620 – 11650
Support 11499 – 11470
UK100
Resistance 7190 – 7220
Support 7140 – 7120
US500
Resistance 2290 – 2320
Support 2260 – 2240
US30
Resistance 20065 – 20080
Support 19900 – 19600
SA40
Resistance 46700 – 47000
Support 45500 – 45300
Commodities
BRENT
Resistance 56.80 – 57.20
Support 55.80 – 55.50
XAUUSD
Resistance 1235.00 – 1250.00
Support 1200.00 – 1180.20
XAGUSD
Resistance 17.60 – 17.80
Support 17.20 – 17.10
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