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16 February 2017 – Dean Forex Market Commentary

16 Feb
Forex Market Preview

16 February 2017 – Dean Forex Market Commentary

Did you know: The Forex or FX Market derives its name from Foreign Exchange. It is essentially the exchange of currency (money) between two different countries. The FX market is the largest financial market in the world, and is open 24 hours per day, 5 days per week. Read More – Introduction To The Forex Market

In the Zone

  • GBPUSD
  • AUDUSD
  • USDZAR

Noteworthy News

  • Trump again reiterated that there will be lower taxes for both individuals and businesses yesterday. He seems to be teeing it up, expect the USD and the stock markets to run a little bit when it gets announced.

Recap

What a difference one day can make, between Tuesday and Wednesday there was not much difference, there was strong US economic data releases and we also heard hawkish comments from various Fed members. While the USD did move to daily highs on the day, it wasn’t long before the greenback unravelled and all the gains were reversed.

It was interesting to note that the reversals all started happening around major support levels, major moving averages, and Fibonacci levels. I find this encouraging and it makes me wonder if the market is finally moving back to market normalization. I am keeping an eye on the equity indices, and I would be hesitant to look for long trades in these instruments, despite possible gains on attractive tax brackets, there could be a bubble forming.

We discussed that the EURUSD could have another attempt at the 1.0620 level yesterday and that is where price is right now. The 100 hour MA trades at 1.0600 and as long as price can trade above that level, it should be bullish for the EUR. Major support is still hovering around 1.0575 and we need price to stay above that support to avoid sellers wrestling back control.

The USDJPY is currently trading between two major moving averages, the 200 hour MA is trading at 114.25 and that is where price found resistance yesterday, and I do believe that traders will lean against that level again today. The 100 hour MA is trading around 113.75 and that is where we find price this morning, this will be a big level this morning and if price is able to break through we could start targeting 112.50.

The NZDUSD is an interesting pair, it really was struggling to find a solid foothold but took advantage of the weaker dollar yesterday and was able to trade to the 200 hour MA at 0.7250. Price seems to be stalling there, and we also have event risk in the form of NZ Retail Sales this evening which could move this pair. If we are not able to trade higher than 0.7250, the sellers will take back the initiative.

Dean’s Daily FX Update – 16 February 2017

Daily Ranges 16/02/2017

Majors

EURUSD

Resistance                                          1.0630 – 1.0650

Support                                                1.0570 – 1.0550

GBPUSD

Resistance                                          1.2500 – 1.2530

Support                                                1.2420 – 1.2400

AUDUSD

Resistance                                          0.7710 – 0.7730

Support                                                0.7650 – 0.7630

NZDUSD

Resistance                                          0.7210 – 0.7230

Support                                                0.7140 – 0.7120

USDCAD

Resistance                                          1.3100 – 1.3115

Support                                                1.3040 – 1.3020

USDJPY

Resistance                                          114.30 – 114.50

Support                                                113.60 – 113.30

USDCHF

Resistance                                          1.0070 – 1.0090

Support                                                1.0010 – 0.9990

Rand

USDZAR

Resistance                                          13.0900 – 13.1550

Support                                                12.9050 – 12.8850           

EURZAR

Resistance                                          13.8550 – 13.9080

Support                                                13.7325 – 13.6900

GBPZAR

Resistance                                          16.3010 – 16.3460

Support                                                16.1200 – 16.1440

Minors

AUDCAD

Resistance                                          1.0060 – 1.0080

Support                                                1.0020 – 1.0000

AUDJPY

Resistance                                          87.90 – 88.40

Support                                                87.20 – 87.00

EURCHF

Resistance                                          1.0670 – 1.0690

Support                                                1.0630 – 1.0610

EURGBP

Resistance                                          0.8510 – 0.8530

Support                                                0.8460 – 0.8430

EURJPY

Resistance                                          121.20 – 121.50

Support                                                120.30 – 120.00

GBPJPY

Resistance                                          142.77 – 142.90

Support                                                141.40 – 141.20

GBPCAD

Resistance                                          1.6340 – 1.6370

Support                                                1.6230 – 1.6200

GBPCHF

Resistance                                          1.2590 – 1.2610

Support                                                1.2500 – 1.2480

Indices

DE30

Resistance                                          11800 – 11900

Support                                                11730 – 11710

UK100

Resistance                                          7280 – 7320

Support                                                7250 – 7230

US500

Resistance                                          2350 – 2390

Support                                                2310 – 2300

US30

Resistance                                          20600 – 20620

Support                                                20350 – 20300

SA40

Resistance                                          46200 – 46400

Support                                                45300 – 45000

Commodities

BRENT

Resistance                                          56.80 – 57.00

Support                                                55.50 – 55.10

XAUUSD

Resistance                                          1235.00 – 1250.00

Support                                                1215.00 – 1200.20

XAGUSD

Resistance                                          17.80 – 17.99

Support                                                17.40 – 17.20

Important Economic Data out today

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