The entire Forex market is focused on the mystery of GBPUSD (cable) over night. Traders in London were summoned back to the office late last night – I have been on the phone to a number of ex colleagues in London, and no one has a definitive answer yet, but everyone is unanimous in saying it has been chaos. We have heard various reports referencing “fat fingers”, French President Hollande comments with regards to Brexit, a flash crash, an algo-induced catastrophe and the less likely leaked NFP (Non-Farm Payrolls) release.
Dean's Daily FX Update – 07 October 2016
Forex – In the Weekly FX Trading Zone
- AUDUSD
- USDCAD
- USDCHF
The GBPUSD is obviously the big mover, some are saying that there may an opportunity for a “gap” trade. My opinion is to stay away from this pair for now and I will cover it a little bit more in the video this morning.
The EURUSD closed exactly on the triangle last night, but has since drifted below the triangle parameter. We would need a close out of the triangle to create a little momentum, we have the payrolls today which could move this pair but I am sceptical as a bad number would just force this pair back into the middle of the range.
The AUDUSD, NZDUSD, and USDCAD have all wondered a little weaker and into range, trading has been subdued though and it makes me nervous that the CAD has not taken advantage of the really strong oil price which continues to blaze through previous resistance levels.
On a side note, considering how strong the USD has been this week and the weaker metal prices, the USDZAR has been really robust and has managed to stay below the psychological 14.0000 level.
Daily FX Ranges
EURUSD
Resistance 1.1165 – 1.1200
Support 1.1100 – 1.1085
GBPUSD
Resistance 1.2600 – 1.2650
Support 1.2400 – 1.2350
AUDUSD
Resistance 0.7600 – 0.7620
Support 0.7567 – 0.7540
NZDUSD
Resistance 0.7182 – 0.7200
Support 0.7139 – 0.7110
USDCAD
Resistance 1.3250 – 1.3285
Support 1.3118 – 1.3097
USDJPY
Resistance 104.00 – 104.27
Support 103.36 – 103.00
USDCHF
Resistance 0.9830 – 0.9850
Support 0.9760 – 0.9733
USDZAR
Resistance 13.9100 – 14.0500
Support 13.7100 – 13.6468
Important Economic Data out today
- 10:30 GBP Manufacturing Production
- 14:30 CAD Employment Change
- 14:30 CAD Unemployment Rate
- 14:30 USD Average Hourly Earnings
- 14:30 USD Non-Farm Employment Change
- 14:30 USD Unemployment Rate
As usual, I will be sitting out the market today – I never trade on NFP days! Today, however, seems to be bracing itself for a wild day in the FX markets.
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