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Donald Trump promised a lot during his campaign to become President. Much of which was market friendly. There were promises around relaxed regulation, there was the promise of “phenomenal” tax cuts and some state of the art infrastructure spending. There was a press conference held by the State Treasury Secretary Mnuchin yesterday that was almost as bizarre as Trumps, we are starting to see that even the Trump supporters are starting to protest now.
Dean's Daily FX Update – 24 February 2017
In the Zone
- GBPUSD
- AUDUSD
- NZDUSD
- USDZAR
Noteworthy News
- Donald Trump is starting to see his own supporters turn on him, he seems to have a similar mind set to another President that we all know. Unless he learns to change, and change quickly, we could have to endure a very long 4 years.
Recap
It won’t be long before the market connects all the dots, we are already starting to see hopes for growth played down as well as extended timelines for recent promises – the tax revision has been pushed back to August and infrastructure spend to 2018. It won’t be long before this administration comes under extreme pressure as we have to come to the conclusion that either they are moving towards partisan politics, or that even with total Republican control, they can’t deliver.
You get the impression that yesterday’s speech by Mnuchin was the start of the realization and the USD slumped immediately afterwards. The EURUSD was struggling yesterday before the speech, but was able to trade as high as 1.0600 afterwards, this was the major resistance level that we were watching and it did hold. Europe has its own political drivers at the moment and I think that we will have to see the EUR break above 1.0600 before we can get excited.
The USDJPY had another test of downside support at 112.60, this has been a major support level stretching back to January, and the market once again found an immediate bounce at these levels. I do believe that will have a mini dollar recovery today, but if the JPY wants to make further inroads it will need to see a close below 112.50.
The USDCAD has managed to find some nice flow, it had the “double whammy” of dollar softness and a resurgent oil price to help drive it stronger. The pair did trade as low as 1.3060 at one point but did find some support. If this pair is able to trade as low 1.3095 – 1.3085 this morning, I would be interested to look for some long set ups.
Daily Ranges 24/02/2017
Majors
EURUSD
Resistance 1.0580 – 1.0600
Support 1.0520 – 1.0500
GBPUSD
Resistance 1.2570 – 1.2590
Support 1.2470 – 1.2450
AUDUSD
Resistance 0.7730 – 0.7750
Support 0.7670 – 0.7650
NZDUSD
Resistance 0.7220 – 0.7250
Support 0.7160 – 0.7140
USDCAD
Resistance 1.3150 – 1.3170
Support 1.3090 – 1.3070
USDJPY
Resistance 113.30 – 113.50
Support 112.60 – 112.40
USDCHF
Resistance 1.0120 – 1.0140
Support 1.0060 – 1.0040
Rand
USDZAR
Resistance 12.9920 – 13.0330
Support 12.9060 – 12.8550
EURZAR
Resistance 13.7140 – 13.7480
Support 13.6095 – 13.5720
GBPZAR
Resistance 16.2350 – 16.2790
Support 16.1080 – 16.0660
Minors
AUDCAD
Resistance 1.0130 – 1.0140
Support 1.0080 – 1.0050
AUDJPY
Resistance 87.30 – 87.40
Support 86.80 – 86.60
EURCHF
Resistance 1.0670 – 1.0690
Support 1.0630 – 1.0610
EURGBP
Resistance 0.8480 – 0.8510
Support 0.8425 – 0.8410
EURJPY
Resistance 119.60 – 119.40
Support 119.00 – 118.80
GBPJPY
Resistance 141.50 – 141.80
Support 140.60 – 140.20
GBPCAD
Resistance 1.6440 – 1.6460
Support 1.6360 – 1.6330
GBPCHF
Resistance 1.2620 – 1.2640
Support 1.2540 – 1.2520
Indices
DE30
Resistance 12000 – 12030
Support 11900 – 11870
UK100
Resistance 7300 – 7320
Support 7250 – 7230
US500
Resistance 2370 – 2390
Support 2340 – 2320
US30
Resistance 20770 – 20800
Support 20600 – 20550
SA40
Resistance 45800 – 45980
Support 45000 – 44800
Commodities
BRENT
Resistance 56.70 – 57.00
Support 55.90 – 55.50
XAUUSD
Resistance 1250.00 – 1270.00
Support 1235.00 – 1225.00
XAGUSD
Resistance 18.20 – 18.50
Support 17.70 – 17.50
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