I wouldn’t say that there was more action in the market yesterday compared to Friday, but we could definitely sense that the market is waiting for President Trump to tell us something – in fact at this point we would be happy to hear anything! It would seem that in his first days, President Trump is battling with the difference between campaigning and leading – he did mention yesterday that he wanted a massive corporate tax cut, yet all we saw was a 15 pip move.
Dean's Daily FX Update – 24 January 2017
In the Zone
- EURUSD
- GBPUSD
- AUDUSD
- NZDUSD
Noteworthy News
- President Trump signed his first executive orders yesterday and that was to quit TPP and freeze Federal hiring. This was largely expected, the market is still waiting on how he will get this massive infrastructure spend considering the debt the US already hold.
Recap
After all the rhetoric that we heard in his campaign – the public want him to stop talking about himself and tell us how and when he intends delivering on all these promises. We expected some gradual dollar weakness yesterday and that is what we got, the disappointing aspect is that we didn’t get any direction in the New York session.
The EURUSD struggled most yesterday as it hit a hurdle around 1.0750 and despite the other major pairs making some inroads against the dollar – this resistance was too much for the EUR to break. The longer the EUR takes to break higher, the less convincing it becomes and I would be looking for reasons to short this pair today.
GBPUSD was equally slow but it did break through that 1.2415 resistance level to end the day closer to 1.2540, I would expect some form of pullback this morning but I am hesitant to trade too aggressively here. The broad range that formed after the October flash crash is still very much in play and coupled with Brexit news – there is the chance that this pair continues its recovery in the short term.
The USDJPY has been the best trade of the year thus far – unfortunately it is also the pair that will be most prone to knee jerk reactions on headlines out of the US. The pair got as low as 112.50 and will be the next level to watch, a break below this level will open the pair up for a test of 112.10 – 111.50 which would represent the 38% fib move from the US election move in November last year.
There is some opportunity forming in the commodity pairs and we cover this in more detail in the morning video.
Daily Ranges 24/01/2017
Majors
EURUSD
Resistance 1.0750 – 1.0775
Support 1.0690 – 1.0670
GBPUSD
Resistance 1.2510 – 1.2540
Support 1.2390 – 1.2360
AUDUSD
Resistance 0.7580 – 0.7590
Support 0.7520 – 0.7500
NZDUSD
Resistance 0.7230 – 0.7260
Support 0.7160 – 0.7150
USDCAD
Resistance 1.3305 – 1.3330
Support 1.3219 – 1.3190
USDJPY
Resistance 113.90 – 114.10
Support 112.80 – 112.50
USDCHF
Resistance 1.0020 – 1.0030
Support 0.9980 – 0.9955
Rand
USDZAR
Resistance 13.5652 – 13.5970
Support 13.4410 – 13.4092
EURZAR
Resistance 14.5450 – 14.5600
Support 14.4458 – 14.4220
GBPZAR
Resistance 16.8850 – 16.9160
Support 16.7348 – 16.6950
Minors
AUDCAD
Resistance 1.0077 – 1.0090
Support 1.0019 – 1.0002
AUDJPY
Resistance 86.05 – 86.40
Support 85.50 – 85.30
EURCHF
Resistance 1.0730 – 1.0740
Support 1.0710 – 1.0700
EURGBP
Resistance 0.8640 – 0.8660
Support 0.8590 – 0.8570
EURJPY
Resistance 122.07 – 122.25
Support 121.40 – 121.20
GBPJPY
Resistance 141.96 – 142.20
Support 140.70 – 140.00
GBPCAD
Resistance 1.6590 – 1.6627
Support 1.6450 – 1.6410
GBPCHF
Resistance 1.2490 – 1.2510
Support 1.2400 – 1.2370
Indices
DE30
Resistance 11600 – 11620
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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