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As we discussed yesterday morning, it proved to be a bit of a choppy day and it seemed as though no one was keen to dictate the direction of trade. This often happens the day after a US bank holiday and I am sure that by this afternoon the market will be back on track, as it is, the major moves happen in the Asian Pacific session.
Dean's Daily FX Update – 22 February 2017
In the Zone
- EURUSD
- NZDUSD
- USDCAD
Noteworthy News
- Mnuchin told the IMF yesterday that he wanted a “frank and candid” analysis of global currency practices. It seems that President Trump and the Treasury are fixated on currencies, but they have very short memories though – by going through years of austerity, the US actually devalued their own currency.
Recap
We still remain patient in the EURUSD, 1.0520 was our line in the sand and the good news is that price did find some initial support there, the main concern I have is the bounce was triggered last night by weak US economic data.
Cable showed some real character yesterday, an initial sell off of around 70 pips in the morning session was steadily erased through the day. Near resistance comes in between 1.2510 – 1.2550 and I suspect that this where price may drift this morning. I am still on the side lines until the dust settles after Brexit.
The USDPY was the mover that we were hoping for yesterday, it did have a look at 113.80 yesterday but the weak data slowed the momentum. This pair will trade in correlation with US stocks this week and so I will be keeping an eye out for that today. This morning the USDJPY is trading in the middle of the range, the key level to watch will be 113.50, a break above this level and we will start targeting 114.00, near term support comes in at 112.80.
The AUDUSD has done a full round trip this week already, it was pretty weak yesterday morning but made back all the losses in the evening. Like the JPY, this pair is in the middle of the range and I will only look to trade this pair at the extremes, I will look for short setups at around 0.7720 and long setups at around 0.7635.
Daily Ranges 22/02/2017
Majors
EURUSD
Resistance 1.0580 – 1.0600
Support 1.0520 – 1.0500
GBPUSD
Resistance 1.2500 – 1.2520
Support 1.2420 – 1.2400
AUDUSD
Resistance 0.7690 – 0.7720
Support 0.7650 – 0.7630
NZDUSD
Resistance 0.7190 – 0.7200
Support 0.7140 – 0.7120
USDCAD
Resistance 1.3150 – 1.3170
Support 1.3100 – 1.3080
USDJPY
Resistance 113.80 – 113.90
Support 113.00 – 112.90
USDCHF
Resistance 1.0120 – 1.0140
Support 1.0040 – 1.0020
Rand
USDZAR
Resistance 13.1520 – 13.1870
Support 13.0525 – 13.0050
EURZAR
Resistance 13.9050 – 13.9280
Support 13.7725 – 13.7400
GBPZAR
Resistance 16.3610 – 16.4100
Support 16.2530 – 16.2280
Minors
AUDCAD
Resistance 1.0110 – 1.0130
Support 1.0050 – 1.0030
AUDJPY
Resistance 87.50 – 87.70
Support 86.80 – 86.60
EURCHF
Resistance 1.0670 – 1.0690
Support 1.0630 – 1.0610
EURGBP
Resistance 0.8500 – 0.8530
Support 0.8425 – 0.8410
EURJPY
Resistance 120.00 – 120.30
Support 119.20 – 119.10
GBPJPY
Resistance 141.70 – 142.00
Support 140.80 – 140.50
GBPCAD
Resistance 1.6410 – 1.6430
Support 1.6330 – 1.6300
GBPCHF
Resistance 1.2620 – 1.2640
Support 1.2520 – 1.2500
Indices
DE30
Resistance 11990 – 12010
Support 11850 – 11820
UK100
Resistance 7310 – 7330
Support 7250 – 7230
US500
Resistance 2350 – 2390
Support 2310 – 2300
US30
Resistance 20740 – 20800
Support 20600 – 20550
SA40
Resistance 45800 – 45980
Support 45200 – 45100
Commodities
BRENT
Resistance 57.00 – 57.30
Support 56.20 – 56.00
XAUUSD
Resistance 1240.00 – 1250.00
Support 1215.00 – 1200.20
XAGUSD
Resistance 17.90 – 18.09
Support 17.40 – 17.20
Important Economic Data out today
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