What a great day for Dean Yesterday. Dean was leaning against the dollar after a very aggressive rally on Friday, was spot on. Most of the currencies paired against the USD got back some of the losses taken on Friday and we are back at some interesting levels.
Dean's Daily FX Update – 23 August 2016
The EURUSD bounced off the 38.2 Fibonacci level and traded back up to our level of resistance at 1.1320 and a little beyond. We will have to wait and see how the price action in this forex pair plays out to determine the next move. Most of the indicators are in no man’s land so we will need to wait and see.
A huge day for GBPUSD yesterday as it smashed through the 1.31 level which had been a big resistance level post Brexit. We may see a continuation of strength as there is some talk that Brexit won’t take place until 2019. This also coincides with the next General Election and who would want to pull the pin before that?
The AUDUSD broke back through the support of 0.7626 and we could see a continued push higher. Given that is it the European summer holidays for a few more weeks, Dean keen to play the range channels.
The Kiwi has been on a rampage after upbeat statements from Governor Wheeler of the Reserve Bank. We will wait to see how this plays out right at the top of our recent highs.
Dean looking closely at the USDCAD because it found strength even though there were falling oil prices. He is looking to see if there is a break below 1.29 where there could be a continued push lower. Stochastics are heavily overbought, MACD had turned and the EMAs have started to turn. Classic bear flag could be forming here too for those of you that look at those types of patterns.
His other trade he looking to short is the USDZAR. Very similar pattern and setup to the USDCAD where it has looked heavily overbought and the lagging indicators have started to turn south.
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