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 May 2017
In the Zone
- EURUSD
- GBPUSD
- USDCAD
- USDCHF
Noteworthy News
- President Trump suggested that no politician in history has been treated as unfairly as he has, perhaps he is trying to play the underdog, but he probably does have a valid point. The Democrats smell blood though and have invited Comey to testify to the House. I still think that this could back fire on them, as a can of worms will need to be opened on other cases.
Recap
When a political scandal erupts into the headlines, it becomes the most paramount thing to watch. There is no economic data or headlines that can change the course of the day, I tend to walk away on those days as it is not worth taking on a machine that size. What I do know, is that the world is a remarkably resilient place and that these sort of things do blow over, so my strategy is sit and wait for the cloud to blow over and then take advantage of the retracements.
The USDJPY was predictably the most affected yesterday, it wasn’t a quick move as we have become accustomed to in the JPY, but more of a slow steady move. By the end of the day the pair had shed in excess of 200 pips – the largest single day drop in a year – and broke through various MA levels along the day. It has moved from above 114.00 to below 111.00 in 3 days, the momentum is starting to slow though and so I will wait for divergence before getting into the long trade.
Surprisingly the commodity currencies were initially under pressure, but they managed to reverse the gains to finish slightly up on the day. The USDCAD is an interesting pair to me as it is relying solely on oil to dictate its path. We are seeing divergence starting to build in CAD and we have seen some clear support at 1.3575, with oil losing a little momentum the USDCAD could follow suit.
We have mentioned in earlier reports and videos that 1.3000 is proving to be a tough level to break in the GBPUSD. The last 3 weeks has seen the cable form a clear range, and this was something that occurred leading into the Brexit referendum last year – is this a case of history repeating itself. Traders seem content play the range for now and take “free” pips, the risk is only when the range breaks before we get a substantial move.
Daily Ranges 18/05/2017
Majors
EURUSD
Resistance 1.1149 – 1.1160
Support 1.1100 – 1.1080
GBPUSD
Resistance 1.2970 – 1.3000
Support 1.2920 – 1.2900
AUDUSD
Resistance 0.7440 – 0.7470
Support 0.7400 – 0.7370
NZDUSD
Resistance 0.6930 – 0.6950
Support 0.6890 – 0.6850
USDCAD
Resistance 1.3630 – 1.3650
Support 1.3580 – 1.3560
USDJPY
Resistance 111.90 – 112.10
Support 111.20 – 111.00
USDCHF
Resistance 0.9850 – 0.9870
Support 0.9780 – 0.9750
Rand
USDZAR
Resistance 13.3000 – 13.3500
Support 13.1100 – 13.0800
EURZAR
Resistance 14.8250 – 14.9000
Support 14.5940 – 14.5500
GBPZAR
Resistance 17.2240 – 17.2560
Support 16.9860 – 16.9560
Minors
AUDCAD
Resistance 1.0160 – 1.0180
Support 1.0080 – 1.0060
AUDJPY
Resistance 83.30 – 83.50
Support 82.60 – 82.40
EURCHF
Resistance 1.0940 – 1.0960
Support 1.0900 – 1.0880
EURGBP
Resistance 0.8609 – 0.8620
Support 0.8560 – 0.8540
EURJPY
Resistance 124.60 – 124.80
Support 123.85 – 123.50
GBPJPY
Resistance 145.00 – 145.20
Support 144.07 – 144.00
GBPCAD
Resistance 1.7650 – 1.7670
Support 1.7570 – 1.7550
GBPCHF
Resistance 1.2750 – 1.2770
Support 1.2690 – 1.2670
Indices
DE30
Resistance 12700 – 12720
Support 12620 – 12600
UK100
Resistance
Support
US500
Resistance 2380 – 2400
Support 2360 – 2340
US30
Resistance 20820 – 20850
Support 20650 – 20600
SA40
Resistance 48000 – 48100
Support 47400 – 47500
Commodities
BRENT
Resistance 52.20 – 52.40
Support 51.20 – 51.00
XAUUSD
Resistance 1250.00 – 1260.00
Support 1220.00 – 1210.00
XAGUSD
Resistance 16.80 – 17.00
Support 16.50 – 16.30
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.
