It has taken me a long time to pen the FX report this morning. In truth I am not entirely certain how to read the markets today. We cover a lot of technical detail in the video this morning, the majority of the technical indicators point towards some surging USD strength. But from a fundamental stand, President Trump did not really leave us anything to cut our teeth into over the weekend. So I just wonder if the market may be in a little limbo this morning and perhaps wait for the New York session to dictate the direction of trade.
Dean's Daily FX Update – 23 January 2017
In the Zone
- EURUSD
- GBPUSD
- AUDUSD
- USDCAD
Noteworthy News
- The OPEC compliance committee met this weekend and were happy that the planned oil production cuts were being met. This should underpin the oil prices.
Recap
First thing this morning is a bout of broad dollar weakness, the EURUSD is trading at 1.0750 and cable is trading at 1.2455 – both could be seen as major resistance levels. I am hesitant to trade the GBPUSD just yet with all the speculation surrounding Brexit and so perhaps I will look at how the EUR is performing later this afternoon.
Something similar can be seen in the commodity currencies with the AUDUSD trading at 0.7590 and the NZDUSD at 0.7220 – again both major resistance levels. The USDCAD did a lot of work last week and so this is the anomaly this morning, it is one of the few pairs where one would expect to see the loonie recover against the USD.
It all paints for something that may seem a little too obvious – but I am really cautious this morning, it is one of those days where the fundamentals may trump (excuse the pun) the technical. I am living by my credo, “If in doubt – stay out,” and am going to wait for the dust to settle which may only come in the evening session tonight.
Daily Ranges 23/01/2017
Majors
EURUSD
Resistance 1.0750 – 1.0775
Support 1.0658 – 1.0648
GBPUSD
Resistance 1.2440 – 1.2470
Support 1.2300 – 1.2280
AUDUSD
Resistance 0.7580 – 0.7590
Support 0.7520 – 0.7500
NZDUSD
Resistance 0.7210 – 0.7240
Support 0.7140 – 0.7120
USDCAD
Resistance 1.3335 – 1.3350
Support 1.3260 – 1.3240
USDJPY
Resistance 114.65 – 114.90
Support 113.20 – 113.00
USDCHF
Resistance 1.0060 – 1.0080
Support 0.9980 – 0.9955
Rand
USDZAR
Resistance 13.6207 – 13.6550
Support 13.5096 – 13.4850
EURZAR
Resistance 14.5450 – 14.5600
Support 14.4458 – 14.4220
GBPZAR
Resistance 16.8540 – 16.8820
Support 16.6878 – 16.6376
Minors
AUDCAD
Resistance 1.0083 – 1.0095
Support 1.0031 – 1.0020
AUDJPY
Resistance 86.75 – 87.06
Support 85.80 – 85.60
EURCHF
Resistance 1.0730 – 1.0740
Support 1.0710 – 1.0700
EURGBP
Resistance 0.8690 – 0.8700
Support 0.8620 – 0.8600
EURJPY
Resistance 122.70 – 122.85
Support 121.60 – 121.40
GBPJPY
Resistance 142.06 – 142.20
Support 140.70 – 140.00
GBPCAD
Resistance 1.6500 – 1.6527
Support 1.6380 – 1.6340
GBPCHF
Resistance 1.2440 – 1.2460
Support 1.2330 – 1.2310
Indices
DE30
Resistance 11620 – 11660
Support 11550 – 11530
UK100
Resistance 7210 – 7230
Support 7160 – 7120
US500
Resistance 2270 – 2300
Support 2260 – 2220
US30
Resistance 19800 – 19850
Support 19700 – 19600
SA40
Resistance 46800 – 47000
Support 46000 – 45800
Commodities
BRENT
Resistance 55.60 – 55.80
Support 54.40 – 54.00
XAUUSD
Resistance 1212.09 – 1220.00
Support 1195.00 – 1190.20
XAGUSD
Resistance 17.15 – 17.30
Support 16.90 – 16.80
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