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Another day that felt as though we were watching grass grow, the ranges in all the major pairs are starting to narrow somewhat ahead of the next week, and most of the action was in the crosses. The dollar still rose though, albeit at a very modest pace as the momentum is starting to slow considerably. The Trump administration are still banging on about currency manipulation, I have mentioned this before, but the US have extremely short memories!
Dean's Daily FX Update – 08 March 2017
In the Zone
- GBPUSD
- NZDUSD
- USDCAD
Noteworthy News
- The House of Lords has voted to give PM may the power to reject Brexit terms, this staves off the possibility of the EU trying to force bad terms onto the UK during negotiations.
Recap
The EURUSD traded in a very tight range last night in the New York session (25 pips). The level to watch today will be 1.0560, this is where the buyers entered the market yesterday, and it coincides with the 100 hour moving average which buyers are leaning against for now.
When ranges are tight, the USDJPY usually is a trader’s salvation, but this pair was just as bad with a daily range of 40 pips. The pair did find some support yesterday at 113.60 which is in line with what we were attempting to achieve, as long as this pair stays below 114.00 I think the bias will be for the sellers to make some more headway.
The USDCAD surged on weaker than expected economic data, the pair did manage to find some resistance at the lows that we encountered on Friday. This means that for now the market has created a double top. The pair has not closed below the 100 hour MA since Monday last week which is not sitting at 1.3390. The pair will have to break through those levels before it is able to make some headway.
The AUDUSD has been the resilient pair in the bunch with very positive data coming out of Australia the last 2 days. It is interesting to notice that the pair found resistance at the 61.8% fib, since it is a strategy we are using with the rest of our pairs, it is encouraging to note that this strategy did work.
We discuss some set ups in the FX video this morning, these setups look rather obvious on any other day, but I am still wary of the next week considering the event risk that lies.
Daily Ranges 08/03/2017
Majors
EURUSD
Resistance 1.0600 – 1.0620
Support 1.0540 – 1.0520
GBPUSD
Resistance 1.2250 – 1.2260
Support 1.2190 – 1.2170
AUDUSD
Resistance 0.7605 – 0.7620
Support 0.7560 – 0.7540
NZDUSD
Resistance 0.7000 – 0.7020
Support 0.6960 – 0.6940
USDCAD
Resistance 1.3420 – 1.3435
Support 1.3380 – 1.3360
USDJPY
Resistance 114.20 – 114.30
Support 113.60 – 113.20
USDCHF
Resistance 1.0160 – 1.0180
Support 1.0100 – 1.0080
Rand
USDZAR
Resistance 13.0155 – 13.0300
Support 12.9270 – 12.8800
EURZAR
Resistance 13.8080 – 13.8390
Support 13.6780 – 13.6250
GBPZAR
Resistance 15.8840 – 15.9270
Support 15.7860 – 15.7490
Minors
AUDCAD
Resistance 1.0200 – 1.0240
Support 1.0140 – 1.0120
AUDJPY
Resistance 86.70 – 87.00
Support 86.10 – 85.90
EURCHF
Resistance 1.0720 – 1.0740
Support 1.0690 – 1.0670
EURGBP
Resistance 0.8670 – 0.8690
Support 0.8630 – 0.8610
EURJPY
Resistance 120.80 – 121.00
Support 120.20 – 120.00
GBPJPY
Resistance 139.40 – 139.70
Support 138.70 – 138.50
GBPCAD
Resistance 1.6420 – 1.6440
Support 1.6340 – 1.6320
GBPCHF
Resistance 1.2400 – 1.2420
Support 1.2350 – 1.2330
Indices
DE30
Resistance 12000 – 12030
Support 11930 – 11900
UK100
Resistance 7370 – 7400
Support 7320 – 7300
US500
Resistance 2380 – 2400
Support 2360 – 2340
US30
Resistance 21000 – 21070
Support 20880 – 20850
SA40
Resistance 44700 – 44800
Support 44000 – 43800
Commodities
BRENT
Resistance 55.90 – 56.00
Support 55.00 – 54.80
XAUUSD
Resistance 1234.00 – 1245.00
Support 1217.00 – 1200.00
XAGUSD
Resistance 17.70 – 17.90
Support 17.40 – 17.20
Important Economic Data out today
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