Dean had a great day yesterday as all the pairs he picked out gained strength against the USD. There are three Forex pairs he is looking at this morning. They are not his favourite forex pairs to trade so he will be exercising some caution especially in the USDZAR.
Dean's Daily FX Update – 14 October 2016
In the Zone
- USDJPY
- USDCHF
- USDZAR
Noteworthy News
- Local news again makes headlines, President Zuma last night applied for a final court interdict to block the Public Protector from releasing her report into State capture. It hasn’t had any material effect on the currency yet, but it’s enough to keep me out the pair – the truth is that I am not entirely certain which way the currency will trade on any adverse findings.
Recap
Weak Chinese data threatened to put a major dampener on the day’s trading yesterday and put further momentum behind the USD, as more traders joined the market however, so we saw most major pairs rally against the greenback. To me it looks as though there was a bout of profit taking yesterday after the Dollar had such a strong move over the course of the week.
I had initially feared for the EURUSD as the pair really moved sharply lower after the break of our triangle, it broke through major support level but ultimately the 1.1000 level was able to provide the relief for a bounce up above 1.1050.
GBPUSD also tried to get back in on the action, there was even talk that traders have picked a bottom of 1.2100. I am not convinced by that and my suspicion is that we are not out of the woods just yet. I believe than any rally will be met with further selling pressure and so I continue to stay out of this pair.
Most of the week the USDCAD and Oil was trading with no correlation which is very uncharacteristic for this pair. Yesterday normality resumed and the USDCAD was able to make some inroads against the dollar. Resistance at 1.3300 failed again and 1.3250 – 1.3300 is proving to be a very strong resistance zone.
There is lots of US data out this afternoon and some comments from a Fed member so we need to keep an eye on that going into the weekend. I have summarised the details below.
Daily FX Ranges
EURUSD
Resistance 1.1054 – 1.1068
Support 1.1005 – 1.0990
GBPUSD
Resistance 1.2256 – 1.2276
Support 1.2159 – 1.2120
AUDUSD
Resistance 0.7577 – 0.7597
Support 0.7538 – 0.7520
NZDUSD
Resistance 0.7100 – 0.7120
Support 0.7060 – 0.7050
USDCAD
Resistance 1.3250 – 1.3265
Support 1.3200 – 1.3185
USDJPY
Resistance 104.15 – 104.47
Support 103.58 – 103.40
USDCHF
Resistance 0.9897 – 0.9912
Support 0.9859 – 0.9850
USDZAR
Resistance 14.3500 – 14.3990
Support 14.1500 – 14.0700
Important Economic Data out today
- 14:30 USD Retail Sales
- 14:30 USD PPI
- 14:30 USD Core Retail Sales
- 14:30 USD FOMC Member Rosengren Speaks
- 16:00 USD Consumer Sentiment
- 16:00 GBP BOE Governor Carney Speaks
- 19:30 USD Fed Chair Yellen Speaks
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