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16 March 2017 – Dean Forex Market Commentary

16 Mar
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16 March 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

For the last two weeks the dollar has been on a rampant move, the interest rate hike was nailed on and perhaps the Fed had changed over a new leaf, it has been a long time since they have been so bullish. The aggressive move in the greenback was the market pricing in 3 or possibly even 4 interest rate hikes this year, after the hike the dollar immediately sold off as traders took profit off the table – after recent weeks, this was no surprise.

Dean’s Daily FX Update – 16 March 2017

In the Zone

  • All major pairs

Noteworthy News

  • Reports that President Trump is considering forming a bloc with Canada and Mexico to challenge the rest of the world was a little surprising considering his attitude towards NAFTA. This will be one to keep an eye on.

Recap

What we saw after was a surprise, and perhaps confirmed you can’t “teach an old dog new tricks,” as Fed Chair Yellen moved back into her old confusing and conservative self. We heard the same old story – can’t make commitment without good economic data, no urgency on rate cuts and she can’t make any commitments to it. This means that we effectively had a “dovish hike,” and considering all the fist pumping two weeks ago, once again she has managed to confuse the market.

The end result was that the dollar finished down by 100 pips against all the pairs and the commodity currencies enjoying even more joy as they strengthened by as much as 150 pips against the dollar. We have further event risk out of the UK and Japan this morning, and we still have the Dutch elections to navigate this afternoon.

All that has happened last night is that the dollar has moved to the extremities of the ranges and so there may be opportunity brewing in all the major pairs. I am going to use a combination of Fibonacci and divergence to dictate the retracement. We may have to wait for the dust to settle before opportunity presents itself but it will come.

The morning video may be a little longer this morning as all the pairs are in range.

Daily Ranges 16/03/2017

Majors

EURUSD

Resistance                                          1.0720 – 1.0740

Support                                                1.0630 – 1.0600

GBPUSD

Resistance                                          1.2260 – 1.2280

Support                                                1.2170 – 1.2150

AUDUSD

Resistance                                          0.7670 – 0.7690

Support                                                0.7590 – 0.7570

NZDUSD

Resistance                                          0.6990 – 0.7020

Support                                                0.6930 – 0.6910

USDCAD

Resistance                                          1.3400 – 1.3410

Support                                                1.3300 – 1.3380

USDJPY

Resistance                                          114.20 – 114.50

Support                                                113.30 – 113.00

USDCHF

Resistance                                          1.0050 – 1.0070

Support                                                0.9998 – 0.9960

Rand

USDZAR

Resistance                                          13.0320 – 13.0650

Support                                                12.8380 – 12.7880           

EURZAR

Resistance                                          13.9130 – 13.9550

Support                                                13.7220 – 13.6810

GBPZAR

Resistance                                          15.9190 – 15.9670

Support                                                15.7200 – 15.6820

Minors

AUDCAD

Resistance                                          1.0226 – 1.0240

Support                                                1.0180 – 1.0160

AUDJPY

Resistance                                          87.00 – 87.30

Support                                                86.60 – 86.40

EURCHF

Resistance                                          1.0740 – 1.0770

Support                                                1.0690 – 1.0670

EURGBP

Resistance                                          0.8760 – 0.8780

Support                                                0.8720 – 0.8700

EURJPY

Resistance                                          122.20 – 122.50

Support                                                121.50 – 121.10

GBPJPY

Resistance                                          140.00 – 140.20

Support                                                139.20 – 139.00

GBPCAD

Resistance                                          1.6410 – 1.6430

Support                                                1.6310 – 1.6280

GBPCHF

Resistance                                          1.2290 – 1.2310

Support                                                1.2250 – 1.2230

Indices

DE30

Resistance                                          12080 – 12100

Support                                                11980 – 11960

UK100

Resistance                                          7390 – 7410

Support                                                7350 – 7330

US500

Resistance                                          2380 – 2400

Support                                                2360 – 2340

US30

Resistance                                          20900 – 21020

Support                                                20860 – 20830

SA40

Resistance                                          44800 – 45000

Support                                                44100 – 43800

Commodities

BRENT

Resistance                                          52.00 – 52.30

Support                                                50.80 – 50.60

XAUUSD

Resistance                                          1220.00 – 1240.00

Support                                                1200.00 – 1180.00

XAGUSD

Resistance                                          17.30 – 17.50

Support                                                16.80 – 16.70

Important Economic Data out today

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