Dean got the directions we expected yesterday and it was all about the Central Banks. The FOMC left rates on hold and was slightly more hawkish but we don’t think her testimony was convincing. The reasons for a possible hike were confusing and it seems the hawks and the doves are playing in the same cage!
Dean's Daily FX Update – 22 September 2016
In the EURUSD, the forex traders in Asia and Europe are digesting the minutes and we have seen a small extension rally. It seems the market respected our levels placed over the weekend and we now heading towards the 1.1225 and possibly 1.1250.
In Cable (GBPUSD), we did find support and now some nice ‘tweezer tops’ forming which is usually a pattern associated with a reversal. Carney is speaking this evening but one would imagine that there would be the right noises out of him and a move back towards 1.33 could be on the cards.
Dean has got his eye on the AUDUSD. We are into his area of interest and we may see a little more strength before it turns. We need to keep a watch on the price action and wait for some of our indicators to start to turn. Very overbought but could still be some legs in this move.
The Kiwi (NZDUSD) has already started its decent. It just moved into our resistance zone and the 50% Fibonacci was hit before retracing backwards. 0.7357 seems to be a level that the market has been struggling to breach for the past few sessions.
The USDCAD has been a very good trade for Dean. Double tops and levels of resistance proved to be the right formation and those in the trade will be trailing stops and looking to see if a possible extension could be in play. A slightly stronger oil price may push this Forex Pair lower still.
The USDJPY smashed through all the support we put in place and now nearing the magic 100 number. Dean feels there could be support around the 99.50 levels but we will see if the BOJ prepared to enter the market to keep the Yen weaker.
The USDZAR has closed the gap Dean spoke about weeks ago. Pravin was not arrested and the market has spent the month getting back to previous support.
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