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If there was any doubt as to why I don’t trade on US holidays, yesterday was the proof. It was like watching paint dry as even London FX traders seemed to take the day off just as I did, there was just very little in the way of direction. What I hate about days like this is that the day after can often become a little bit of a lottery and perhaps we will have to wait to see what the London forex traders want to do with these pairs.
Dean's Daily FX Update – 21 February 2017
In the Zone
- EURUSD
- NZDUSD
- USDCAD
Noteworthy News
- Brian Molefe was sworn in as a MP yesterday, considering the circumstances around his resignation from Eskom, this has further divided the tripartite alliance. Rumours are growing that he will relieve Pravin Gordhan of his duties, I am keeping an eye on the fall out of this as it seems the ruling party continue to self-destruct ahead of the 2019 elections.
Recap
The early morning Asian Pacific session has been met with a rejuvenated dollar fresh off the bank holiday, it leaves me pondering as to whether London will continue to trade this strong dollar trend or if they will sell the dollar back to a neutral position and let New York dictate the direction.
We discussed that the EURUSD looked likely to lose some value on the weekend, it has broken through support at 1.0600 this morning and although support is trading at 1.0580 it does look vulnerable at this point.
The only thing more boring than the USD holiday yesterday was the Brexit debate in the House of Lords. This was reflected in the GBPUSD price and as a result the pair trades in the middle of the range, it is barely changed from the weekend. Considering this, and the possible move on Brexit headlines, I continue to sit this pair out.
The USDJPY was the mover this morning as we discussed yesterday and is currently trading at 113.40, we have first resistance trading at 113.70 and I believe that is where traders are going to lean. Although not a massive economic data point, Japanese Manufacturing PMI come in at a 35 year high this morning, I suspect that this may be supportive towards the JPY.
I cover the commodity currencies in more detail in the morning video.
Daily Ranges 21/02/2017
Majors
EURUSD
Resistance 1.0620 – 1.0640
Support 1.0570 – 1.0550
GBPUSD
Resistance 1.2480 – 1.2500
Support 1.2420 – 1.2400
AUDUSD
Resistance 0.7690 – 0.7710
Support 0.7650 – 0.7630
NZDUSD
Resistance 0.7190 – 0.7200
Support 0.7150 – 0.7120
USDCAD
Resistance 1.3140 – 1.3160
Support 1.3070 – 1.3050
USDJPY
Resistance 113.40 – 113.70
Support 112.70 – 112.50
USDCHF
Resistance 1.0050 – 1.0080
Support 1.0000 – 0.9970
Rand
USDZAR
Resistance 13.1200 – 13.1340
Support 13.0000 – 12.9950
EURZAR
Resistance 13.9050 – 13.9280
Support 13.7725 – 13.7400
GBPZAR
Resistance 16.3010 – 16.3460
Support 16.1500 – 16.1240
Minors
AUDCAD
Resistance 1.0060 – 1.0080
Support 1.0020 – 1.0000
AUDJPY
Resistance 87.20 – 87.40
Support 86.50 – 86.20
EURCHF
Resistance 1.0670 – 1.0690
Support 1.0630 – 1.0610
EURGBP
Resistance 0.8540 – 0.8560
Support 0.8500 – 0.8470
EURJPY
Resistance 120.40 – 120.60
Support 119.90 – 119.70
GBPJPY
Resistance 141.30 – 141.60
Support 140.20 – 140.00
GBPCAD
Resistance 1.6340 – 1.6370
Support 1.6240 – 1.6220
GBPCHF
Resistance 1.2510 – 1.2530
Support 1.2430 – 1.2400
Indices
DE30
Resistance 11800 – 11880
Support 11710 – 11700
UK100
Resistance 7310 – 7330
Support 7250 – 7230
US500
Resistance 2350 – 2390
Support 2310 – 2300
US30
Resistance 20600 – 20620
Support 20500 – 20450
SA40
Resistance 45900 – 46100
Support 45000 – 44700
Commodities
BRENT
Resistance 56.80 – 57.00
Support 55.50 – 55.10
XAUUSD
Resistance 1240.00 – 1250.00
Support 1215.00 – 1200.20
XAGUSD
Resistance 17.90 – 18.09
Support 17.40 – 17.20
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