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Dean's Daily FX Update – 23 May 2017
In the Zone
- EURUSD
- AUDUSD
- USDCAD
- USDCHF
Noteworthy News
- This morning our thoughts and prayers go out to the families of those killed and injured in the bomb attack at an Ariana Grande concert in Manchester last night. The majority of the victims last night were young kids which makes this more tragic, I will keep an eye on the UK response today – I will also keep an eye on the Trump twitter account.
Recap
It was a Monday, President Trump is not in the country and Canada enjoyed a bank holiday yesterday, these were all contributing factors to a really quiet day yesterday. Other than the NZD, the major pairs traded in really tight ranges yesterday, and after the recent debauchery in the US the greenback was really a mixed bag against its counterparts.
The EURUSD is getting close to the levels that it was trading at prior to the US elections in November of last year. This level come in at 1.1300, but realistically I believe that we could see some momentum slowing before those levels. We have seen price stutter around 1.1250 which coincides with the 68% fib stretching back to June 2016, with divergence forming on the intraday charts I think that the sellers may start building offers – despite the strength of the bulls.
Cable continues to trade in a tight range that has formed since the announcement of the general election in June, this is similar to what happened pre the Brexit referendum. I would need to see a break of the range between 1.2980 and 1.2920 to have any interest. Not even the event risk in Manchester last night could shake this pair out – and that should raise red flags for technical traders.
The NZDUSD was an impressive performer yesterday, it tested numerous swing highs and was able to break through. It has been a couple of weeks since we have seen such a technical break, the first resistance yesterday was at 0.7000 but it is bound to find some more momentum in the Asian Pacific session. It is tough to search for a high once we see a break like this, I think that the first round of sellers will start building offers around 0.7050 and so I will wait to see how price behaves there.
The commodities look the better trades to me as our pivotal levels that we highlighted over the weekend have been respected which is encouraging. There is obviously the terrible bombing in Manchester over night to consider, but I will be looking for opportunity in the commodity space today.
Daily Ranges 23/05/2017
Majors
EURUSD
Resistance 1.1250 – 1.1260
Support 1.1180 – 1.1160
GBPUSD
Resistance 1.3020 – 1.3050
Support 1.2970 – 1.2950
AUDUSD
Resistance 0.7490 – 0.7520
Support 0.7420 – 0.7400
NZDUSD
Resistance 0.7025 – 0.7040
Support 0.6940 – 0.6920
USDCAD
Resistance 1.3530 – 1.3550
Support 1.3480 – 1.3460
USDJPY
Resistance 111.60 – 111.80
Support 110.70 – 110.50
USDCHF
Resistance 0.9750 – 0.9770
Support 0.9700 – 0.9690
Rand
USDZAR
Resistance 13.3050 – 13.3500
Support 13.1700 – 13.1550
EURZAR
Resistance 14.9450 – 14.9700
Support 14.7540 – 14.7200
GBPZAR
Resistance 17.3280 – 17.3560
Support 17.1060 – 17.0560
Minors
AUDCAD
Resistance 1.0110 – 1.0140
Support 1.0060 – 1.0040
AUDJPY
Resistance 83.20 – 83.40
Support 82.70 – 82.50
EURCHF
Resistance 1.0930 – 1.0930
Support 1.0900 – 1.0880
EURGBP
Resistance 0.8660 – 0.8680
Support 0.8600 – 0.8580
EURJPY
Resistance 125.20 – 125.50
Support 124.35 – 124.00
GBPJPY
Resistance 145.00 – 145.20
Support 143.90 – 143.70
GBPCAD
Resistance 1.7600 – 1.7620
Support 1.7490 – 1.7460
GBPCHF
Resistance 1.2680 – 1.2700
Support 1.2620 – 1.2600
Indices
DE30
Resistance 12680 – 12700
Support 12550 – 12520
UK100
Resistance
Support
US500
Resistance 2390 – 2410
Support 2360 – 2340
US30
Resistance 20870 – 20900
Support 20700 – 20680
SA40
Resistance 48200 – 48400
Support 47600 – 47400
Commodities
BRENT
Resistance 53.90 – 54.20
Support 52.50 – 52.20
XAUUSD
Resistance 1270.00 – 1280.00
Support 1250.00 – 1230.00
XAGUSD
Resistance 17.10 – 17.30
Support 16.60 – 16.50
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