daily FX market review

17 October 2016 – Daily Forex Market Review

We were not expecting a very busy day this morning and we were bang on the money. All of the forex pairs we covered this morning have traded in a very tight range and there has been little in the way of excitement. It is only the USDZAR that has come close to trading it Average Daily Range of 2500 pips.

Dean was staying out of the EURUSD this morning. There was a lot of talk from European representatives that the UK was in for a hard Brexit and so I think some traders were sitting out. Certain reports are saying clients are calling a bottom on this FX pair but that can spell trouble and the USD bulls might still be in control. Dean saw support at 1.0950 – 1.0980 and we did bounce off there. Resistance is 1.1029 – 1.1050.

In Cable (GBPUSD), we have seen a very small range today. Traders still trying to digest comments over the weekend and only a few prepared to call a halt to the decline. It looks like most of the activity is trade related and no one prepared to push this higher for now. Current support seen at 1.2111 – 1.2140.

The NZDUSD has traded nicely higher today. Up 50 pips from the open and currently trading 0.7135. There is a fair bit of data out tonight and tomorrow with CPI and Milk Prices that could affect how we look tomorrow. One gets the feeling that the Bank of NZ is happy with a weaker exchange rate and have said they would look to cut rates if the market was too strong. Resistance was seen at 0.7120 and we now trading comfortably above that.

USDJPY was on Dean’s watch list this morning. 104.40 had proved to be tough resistance and we have spent most of the day around 104. Some bearish pin-needles and spinning tops gave Dean a clue that this recent run up may be coming to an end. Support seen at 103.40 – 103.76 which will probably be his target area.

There is quite a bit of news out tomorrow with CPI from the NZ, UK and the US and most FX traders will be watching the US. Any hint of the planned rate cut in December being derailed could send the dollar bulls running for the hills!

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