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Dean's Daily FX Update – 07 June 2017
In the Zone
- Everything
Noteworthy News
- There are rumours circulating that ex-FBI chief will not accuse the President of obstructing justice. If this does in deed unfold, we could see the market and in particular the dollar rally.
Recap
Another day characterized by some heavy dollar selling, it was felt dominantly by the JPY and the NZD. Rumour is that the contributing factor to the massive weakness is that we saw massively lower yields with news that China was ready to buy more US notes. I have said many times that I believe that President Trump is a bit egotistical but I wonder how much of this is the work he is doing behind the scenes, it can’t be a coincidence that every time he meets with a world leader something significant happens shortly afterwards. If this is the case, then he is actually delivering on a lot of his campaign promises.
The JOLTS job report posted a very strong number, the importance of this is that this a favourite piece of data for the Fed, further evidence that we may be getting an interest hike next week out of the US. The dollar still weakened on this print as we edge closer to “Super Thursday,” and the lively action we have seen over the course of the week could be due to position squaring.
The EURUSD continues to battle at the 1.1285 level although the bulls will be encouraged to see support holding at 1.1235 and that the 100 hour MA at 1.1245 remains intact. There is a clear range and the market is not sure which way to trade this pair, we will have to wait for the break and trade the direction of it, as there will likely be some momentum behind that break.
The USDJPY followed the yields lower yesterday and broker through the 200 day MA at 110.30 before finding support at 109.20 and settled for the evening at 109.55. Support at 109.20 becomes the key level to watch this morning, a break lower will target 109.00 – 108.50 whilst a continuation of the late bounce last night will target 109.90 – 110.20.
The RBA left rates on hold yesterday and did state that a strong AUD would complicate things in Australia, the AUDUSD did not pay attention to that comment and the currency became stronger during the day anyway. The big level to watch in the AUD has been 0.7500 and it has found some resistance each time we have got there, I am sure we will have a look higher and possibly a test of the 200 day MA at 0.7530, this will be the big level for me. If this resistance level holds, then we could see price a lot lower this evening.
Gold was also a massive gainer today on the lower treasuries and the metal reached a high of 1296, the breach of this 2 month high did not see much buying. Much like AUDUSD, we sit at pivotal levels, if the bulls can’t break through 1295, there is a chance we see gold tumble.
Daily Ranges 07/06/2017
Majors
EURUSD
Resistance 1.1280 – 1.1300
Support 1.1240 – 1.1220
GBPUSD
Resistance 1.2950 – 1.2970
Support 1.2870 – 1.2850
AUDUSD
Resistance 0.7550 – 0.7570
Support 0.7470 – 0.7460
NZDUSD
Resistance 0.7190 – 0.7210
Support 0.7150 – 0.7130
USDCAD
Resistance 1.3470 – 1.3480
Support 1.3430 – 1.3410
USDJPY
Resistance 110.00 – 110.10
Support 109.30 – 109.00
USDCHF
Resistance 0.9660 – 0.9680
Support 0.9620 – 0.9600
Rand
USDZAR
Resistance 12.8500 – 12.8950
Support 12.7470 – 12.7150
EURZAR
Resistance 14.4970 – 14.5200
Support 14.3340 – 14.3000
GBPZAR
Resistance 16.6480 – 16.6960
Support 16.4260 – 16.4060
Minors
AUDCAD
Resistance 1.0140 – 1.0160
Support 1.0070 – 1.0050
AUDJPY
Resistance 82.50 – 82.70
Support 82.00 – 81.80
EURCHF
Resistance 1.0860 – 1.0880
Support 1.0840 – 1.0820
EURGBP
Resistance 0.8740 – 0.8760
Support 0.8700 – 0.8680
EURJPY
Resistance 123.90 – 124.00
Support 123.20 – 123.00
GBPJPY
Resistance 142.00 – 142.20
Support 141.10 – 141.00
GBPCAD
Resistance 1.7400 – 1.7420
Support 1.7325 – 1.7310
GBPCHF
Resistance 1.2450 – 1.2470
Support 1.2390 – 1.2370
Indices
DE30
Resistance 12650 – 12720
Support 12600 – 12500
UK100
Resistance
Support
US500
Resistance 2440 – 2460
Support 2390 – 2380
US30
Resistance 21200 – 21400
Support 21100 – 20900
SA40
Resistance 46900 – 47000
Support 45800 – 45600
Commodities
BRENT
Resistance 50.20 – 50.40
Support 49.20 – 49.00
XAUUSD
Resistance 1290 – 1300
Support 1250 – 1230
XAGUSD
Resistance 17.50 – 17.70
Support 17.20 – 17.10
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