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
Download Our New Weekly Calendar
High Risk Investment Warning: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. Before deciding to trade the products offered by BlackStone Futures you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. BlackStone Futures provides general advice that does not take into account your objectives, financial situation or needs. The content of this Website must not be construed as personal advice. BlackStone Futures recommends you seek advice from a separate financial advisor. Please take the time to read our Risk Disclosure Notice.
