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
Dean's Daily FX Update – 18 April 2017
In the Zone
- EURUSD
- GBPUSD
- AUDUSD
- NZDUSD
- USDCHF
- USDJPY
- USDZAR
Noteworthy News
- There was some jawboning out of the US yesterday as Treasury Secretary Mnuchin mentioned tax reform is being slowed down by the healthcare act. Is this a precursor for a let-down or an upbeat speech on Thursday?
Recap
Most of the world was enjoying another day of rest as they celebrated Easter Monday, and this provided all the ingredients for a choppy day with only the Asian countries and the US in the market yesterday. The US released some pretty sobering manufacturing data yesterday which should have seen the dollar come under more pressure than it did, the dollar has done a lot of work since last week though and perhaps the low liquidity played a part in suggesting that the dollar has done enough for now.
There were some comments from Treasury Secretary Mnuchin that indicated some tax cuts were going to be introduced this year, although most of the comments were clearing up President Trumps comments in the Wall Street Journal last week. Mnuchin is scheduled to speak on Thursday evening and a suspect that this may be an upbeat and dollar supportive occasion – don’t be surprised if the dollar starts pricing this in over the course of the week.
The Easter Weekend has thrown all the pairs into the extremes of their weekly ranges, and I would not be surprised if we get a lot of opportunity this week to make some nice pips. As a result the video this morning is a little bit longer and so I am only going to cover the three big pairs in this report.
We highlighted the 200 bar MA at 1.0675 as the major resistance level for the EURUSD to break, yesterday the EUR did test this level but found immediate resistance. As strong as the 200 hour MA is on the topside, we have equally strong support forming at 1.0620 and so I would like to see this range broken before I look for opportunity in this pair. This morning we have numerous MA averages between 1.0620 and 1.0600 for our buyers to find support.
The USDJPY enjoyed the last couple of days as it strengthened significantly against most pairs, the JPY was able to stay below the 200 day MA which is good news for the JPY traders, it must be said though that there were buyers late in the New York session. The pair closed above this level at 108.75 and this suggests to me that the break below 108.00 was a failed one, I think that the sellers did not fully take advantage and missed their chance. Look for resistance to change polarity and become support as buyers look to establish positions at 1.0875.
The highlight of the weekend was the GBPUSD, cable managed to close the week at its highest level in 3 months at 1.2560, it did trade as high as 1.2600. This move was with London traders on holiday and so it was off very low liquidity, I am not sure if traders are going to take much notice of that trade though and I suspect you may see traders start leaning against these levels as they start looking for shorts.
Daily Ranges 18/04/2017
Majors
EURUSD
Resistance 1.0680 – 1.0700
Support 1.0620 – 1.0600
GBPUSD
Resistance 1.2580 – 1.2600
Support 1.2520 – 1.2500
AUDUSD
Resistance 0.7600 – 0.7630
Support 0.7520 – 0.7500
NZDUSD
Resistance 0.7020 – 0.7050
Support 0.6930 – 0.6920
USDCAD
Resistance 1.3320 – 1.3350
Support 1.3240 – 1.3220
USDJPY
Resistance 109.40 – 109.60
Support 108.50 – 108.30
USDCHF
Resistance 1.0050 – 1.0070
Support 1.0010 – 1.0000
Rand
USDZAR
Resistance 13.4400 – 13.4850
Support 13.2950 – 13.2570
EURZAR
Resistance 14.3030 – 14.3540
Support 14.1430 – 14.1000
GBPZAR
Resistance 16.8800 – 16.9200
Support 16.6750 – 16.6250
Minors
AUDCAD
Resistance 1.0100 – 1.0120
Support 1.0050 – 1.0030
AUDJPY
Resistance 82.80 – 83.00
Support 82.20 – 82.00
EURCHF
Resistance 1.0697 – 1.0710
Support 1.0670 – 1.0630
EURGBP
Resistance 0.8490 – 0.8510
Support 0.8450 – 0.8420
EURJPY
Resistance 116.20 – 116.50
Support 115.30 – 115.10
GBPJPY
Resistance 137.40 – 137.70
Support 136.20 – 136.00
GBPCAD
Resistance 1.6750 – 1.6780
Support 1.6650 – 1.6620
GBPCHF
Resistance 1.2640 – 1.2660
Support 1.2550 – 1.2530
Indices
DE30
Resistance 12150 – 12180
Support 12080 – 12040
UK100
Resistance 7380 – 7400
Support 7340 – 7320
US500
Resistance 2340 – 2370
Support 2330 – 2300
US30
Resistance 20650 – 20700
Support 20600 – 20580
SA40
Resistance 47600 – 48000
Support 46800 – 46500
Commodities
BRENT
Resistance 56.50 – 56.80
Support 55.80 – 55.50
XAUUSD
Resistance 1290.00 – 1300.00
Support 1280.00 – 1260.00
XAGUSD
Resistance 18.60 – 18.70
Support 18.30 – 18.10
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.
