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Dean's Daily FX Update – 25 July 2017
In the Zone
- EURUSD
- NZDUSD
- USDZAR
- Gold
Noteworthy News
- China has boosted it defence and training along the North Korean border, does this increase the likelihood of conflict?
Recap
As anticipated, it was a rather slow day as there was nothing much on the economic calendar to move this market and Washington enjoying a rather scandal free day – by recent standards anyway. The market is waiting for the dollar to spark back to life and what we saw yesterday was a currency that chose to stabilize as opposed to anything else.
The EURUSD bottomed out yesterday at 1.1620 yesterday before it drifted back to where it started the day, the 2016 high traded at 1.1615 and that level for now remains as the near term support. The bulls will look for price to stay above this level this morning, although a break and close below this support then opens up the next major support at 1.1465.
The USDJPY endured a rather choppy day yesterday, the pair traded lower during the morning session before trading higher in the evening. The pair ended the day slightly weaker but still close to that unchanged territory. Looking at recent trading action, it is clear that the wing lows last week traded at 111.50 and this could be the target this morning, later on in the week we could see price target the 100 and 200 day MA at 111.60 – 112.70.
The USDCAD moved another leg lower yesterday on better than expected economic data, this was the lowest level traded since May of last year as the pair traded below 1.2500. The pair immediately bounced but I suspect that it may continue that drift lower this morning. The level to watch today is 1.2520, and a break above could force some momentum during the day – a sustained move below 1.2480 wold target that 2016 low of 1.2460.
Keep an eye out for the afternoon video that tries to tie everything together.
Important Economic Data out today
14:30 USD CB Consumer Confidence
Consensus: 116.5
Effect: Actual higher than expected is good for the USD
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