As expected we have seen a continuation of Friday’s NFP rally from last week in the Asian Pacific Session. Despite Japan being on holiday again this Monday the initial move was sharp, but has since lost a little momentum. A lot of the pairs are showing a little bit of inconsistency this morning, and as the majors hover around key support and resistance levels – we will have to pick our opportunities carefully.
Dean's Daily FX Update – 09 January 2017
In the Zone
- GBPUSD
- USDCAD
- USDJPY
Noteworthy News
- I suspect that we may start to see a lot of headlines around Brexit over the coming weeks, we are already starting to see. This weekend news started filtering how UK Business will have to fund a GBP 90bln pension fund shortfall over the next 10 years. Expect these headlines to provide choppy trading in the GBPUSD.
Recap
The EURUSD was one of the sharp movers on Friday and we saw a small pop above 1.0540 this morning, but it found some early resistance at this levels. This level also represents the 200 hour MA so we will treat this level with respect – I do get the feeling that if the EUR is going to continue with its rally we will need to see a close above 1.0550.
We are continuing to see headlines on the wires about a “hard” Brexit rear its ugly head again, fears over the trigger of article 50 will continue to hamper cable until there is some clarity. From a technical analysis view point, everything points towards the GBP recovering against the USD this morning but I do believe that for now this pair will be driven more on fundamentals – I am going to sit on the side-lines in the GBPUSD for now.
The AUDUSD and the NZDUSD followed a similar pattern this morning, a small attempt higher was met by sellers at the nearest resistance level, the move down however was more of a trickle than anything else. Both oil and gold are not much changed thus far this morning and the commodity currencies I suspect will wait to get direction from those morning moves.
Most traders will be back at the desks across the London and New York hubs this morning and so we may start getting back to normal market conditions. I am excited to kick 2017 off in earnest today and as the saying goes, “Let the games begin!”
Daily Ranges 09/01/2017
Majors
EURUSD
Resistance 1.0600 – 1.0620
Support 1.0520 – 1.0500
GBPUSD
Resistance 1.2300 – 1.2330
Support 1.2200 – 1.2180
AUDUSD
Resistance 0.7320 – 0.7350
Support 0.7290– 0.7270
NZDUSD
Resistance 0.7000 – 0.7020
Support 0.6930 – 0.6910
USDCAD
Resistance 1.3260 – 1.3280
Support 1.3220 – 1.3190
USDJPY
Resistance 117.70 – 117.95
Support 116.20 – 116.00
USDCHF
Resistance 1.0180 – 1.0200
Support 1.0098 – 1.0078
Rand
USDZAR
Resistance 13.7850 – 13.8230
Support 13.6420 – 13.6100
EURZAR
Resistance 14.5070 – 14.5300
Support 14.3860 – 14.3500
GBPZAR
Resistance 16.8900 – 16.9400
Support 16.7610 – 16.7130
Minors
AUDCAD
Resistance 0.9700 – 0.9713
Support 0.9669 – 0.9660
AUDJPY
Resistance 85.84 – 86.00
Support 85.10 – 84.90
EURCHF
Resistance 1.0720 – 1.0740
Support 1.0700 – 1.0690
EURGBP
Resistance 0.8630 – 0.8660
Support 0.8560 – 0.8540
EURJPY
Resistance 123.60 – 123.80
Support 122.65 – 122.48
GBPJPY
Resistance 143.90 – 144.20
Support 143.10 – 142.80
GBPCAD
Resistance 1.6315 – 1.6350
Support 1.6177 – 1.6140
GBPCHF
Resistance 1.2580 – 1.2605
Support 1.2406 – 1.2380
Indices
DE30
Resistance 11600 – 11650
Support 11540 – 11520
UK100
Resistance 7200 – 7250
Support 7180 – 7150
US500
Resistance 2260 – 2280
Support 2240 – 2232
US30
Resistance 19900 – 20000
Support 19750 – 19700
SA40
Resistance 45050 – 45200
Support 44200 – 44000
Commodities
BRENT
Resistance 57.20 – 57.50
Support 56.40 – 56.10
XAUUSD
Resistance 1179.09 – 1185.00
Support 1170.00 – 1165.20
XAGUSD
Resistance 16.60 – 16.80
Support 16.28 – 16.00
Important Economic Data out today
- 17:30 CAD BOC Business Outlook
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