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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
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