Yesterday was a wild day for forex traders. The greenback seemed set to endure a continuation of the pummelling it received post the Donald Trump press conference on Wednesday, but it was able to stabilize and stage a recovery in the New York session. The easy thing seems to attribute any market movment to Donald Trump, but I am keeping an eye on the bond market which is pulling and pushing the USD all over the place.
Dean's Daily FX Update – 13 January 2017
In the Zone
- EURUSD
- AUDUSD
- NZDUSD
- USDZAR
Recap
Yesterday was a wild day, the greenback seemed set to endure a continuation of the pummelling it received post the Donald Trump press conference on Wednesday, but it was able to stabilize and stage a recovery in the New York session. The easy thing seems to attribute any market movment to Donald Trump, but I am keeping an eye on the bond market which is pulling and pushing the USD all over the place.
As discussed last week, the GBPUSD is the pair that I am sitting out for now, yesterday was the perfect illustration why I have made that decision. Cable was riding the USD weakness wave yesterday and a single headline that PM Theresa May will deliver a Brexit speech was enough to create chaos in the market. The initial reaction was a sharp 40 pip drop and later in the afternoon – coupled with a USD rally – the pair lost a further 150 pips. Price is currently at 1.2150 but it does look vulnerable as the market waits on any Brexit news – too unpredictable for me and so I continue to sit this pair out.
The USDJPY continues to attempt its recent correction and so far all I can say is, “I love it when a plan comes together.” We got the break below 115.00 yesterday and before the dollar rally the pair traded as low as 113.75, the pair will inevitably test that support level which we are seeing first thing this morning and it will be key to watch to see if support changes polarity – we cover this more in the morning video.
The USDCAD was enough to put the pressure on yesterday – I was on the receiving end of this. The London session began with a 100 pip drop and traded as low as 1.3030, I did get into this trade early and so there were some nervy moments. A combination of oil, major support levels and solid Fed speak aided the USD rally and price got back to 1.3150. These levels will be interesting to watch this morning but I think there may be some better opportunities in the metal currencies – AUDUSD and USDZAR.
Daily Ranges 13/01/2017
Majors
EURUSD
Resistance 1.0650 – 1.0670
Support 1.0580 – 1.0550
GBPUSD
Resistance 1.2240 – 1.2270
Support 1.2150 – 1.2125
AUDUSD
Resistance 0.7500 – 0.7515
Support 0.7450 – 0.7430
NZDUSD
Resistance 0.7120 – 0.7140
Support 0.7059 – 0.7035
USDCAD
Resistance 1.3160 – 1.3190
Support 1.3100 – 1.3070
USDJPY
Resistance 115.20 – 115.50
Support 114.30 – 113.80
USDCHF
Resistance 1.0136 – 1.0149
Support 1.0050 – 1.0020
Rand
USDZAR
Resistance 13.6000 – 13.6470
Support 13.4250 – 13.3860
EURZAR
Resistance 14.4830 – 14.5230
Support 14.3420 – 14.3010
GBPZAR
Resistance 16.6195 – 16.6770
Support 16.4100 – 16.3537
Minors
AUDCAD
Resistance 0.9855 – 0.9880
Support 0.9800 – 0.9780
AUDJPY
Resistance 86.04 – 86.20
Support 85.50 – 85.20
EURCHF
Resistance 1.0740 – 1.0750
Support 1.0710 – 1.0700
EURGBP
Resistance 0.8747 – 0.8762
Support 0.8670 – 0.8640
EURJPY
Resistance 122.12 – 122.30
Support 121.50 – 121.19
GBPJPY
Resistance 140.30 – 140.50
Support 139.34 – 139.18
GBPCAD
Resistance 1.6059 – 1.6080
Support 1.5940 – 1.5915
GBPCHF
Resistance 1.2340 – 1.2362
Support 1.2257 – 1.2230
Indices
DE30
Resistance 11609 – 11625
Support 11540 – 11520
UK100
Resistance 7320 – 7330
Support 7280 – 7260
US500
Resistance 2270 – 2300
Support 2260 – 2220
US30
Resistance 19900 – 19950
Support 19850 – 19820
SA40
Resistance 46200 – 46400
Support 45300 – 45000
Commodities
BRENT
Resistance 56.30 – 56.70
Support 54.50 – 54.30
XAUUSD
Resistance 1199.09 – 1210.00
Support 1185.00 – 1181.20
XAGUSD
Resistance 16.90 – 17.00
Support 16.58 – 16.30
Important Economic Data out today
- 15:30 USD Retail Sales
- 15:30 USD PPI
- 17:00 USD Prelim Consumer Sentiment
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