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Dean's Daily FX Update – 26 April 2017
In the Zone
- EURUSD
- GBPUSD
- NZDUSD
- USDCAD
Noteworthy News
- The Prime Minster of Canada early this morning vowed to “vigorously defend the lumber industry,” and we are already seeing Trump back track a little. If “The Trumpet” continues to release these crazy statements before doing any research, it won’t be long before the market ignores every word he says.
Recap
It is not often that the New York session packs so much punch, but for consecutive days we had some late drama come out of the US session. Most of the day had been characterized by the continued upbeat nature of the French election story – we still have not seen those gaps close. There was also another bout of Yen selling as well as more volatility in the Canadian dollar.
The EURUSD continued its march higher yesterday, the EUR crosses were also in full force as the EURJPY added another 200 pips to its already impressive performance this week. The pair has managed to trade above 1.0950 this morning and this was a key resistance level, the buyers will need to see a close above this level if it is to see continued strength. Price is also trading near the 61.8% fib from the US elections in November and there is some divergence forming – a sign that momentum is starting to slow down somewhat.
USDJPY saw one way traffic yesterday as the pair traded a lot higher and got to 111.15 yesterday, we have seen some continued buying in the Asian Pacific session last night and the pair is currently trading at around 111.30. There is resistance at 111.50 but as I have outlined in the morning video, I am going to trade this off the daily chart where it seems as though there is a channel forming.
After the USDCAD was “lumbered” (excuse the pun) yesterday on news of the expected timber tariffs, the pair came under pressure again yesterday as President Trump promised to target the Canadian dairy industry next. The pair traded through the 1.3600 level which was a 14 month high, the pair found some resistance there. The pair looks primed for a retracement, but I think it may be too soon for me as London traders may want to move this pair higher – we also have event risk this afternoon.
Rumours out of the market are that we will get news out of the White House regarding the tax reform, on the surface it looks a good one with repatriated corporate taxes slashed to 10% and the top pass through business rate cut from 39.6% to 15%. Judging by the equity markets, we have seen this news filter in, I suspect that this may become dollar positive as traders in Europe get to their desks.
Daily Ranges 26/04/2017
Majors
EURUSD
Resistance 1.0950 – 1.0970
Support 1.0860 – 1.0840
GBPUSD
Resistance 1.2850 – 1.2870
Support 1.2780 – 1.2750
AUDUSD
Resistance 0.7550 – 0.7570
Support 0.7500 – 0.7480
NZDUSD
Resistance 0.6960 – 0.6970
Support 0.6900 – 0.6850
USDCAD
Resistance 1.3590 – 1.3620
Support 1.3520 – 1.3500
USDJPY
Resistance 111.40 – 111.60
Support 110.50 – 110.30
USDCHF
Resistance 0.9950 – 1.0000
Support 0.9920 – 0.9900
Rand
USDZAR
Resistance 13.2000 – 13.2450
Support 13.0350 – 13.0170
EURZAR
Resistance 14.4440 – 14.4840
Support 13.9760 – 13.9200
GBPZAR
Resistance 16.8830 – 16.9200
Support 16.6750 – 16.6250
Minors
AUDCAD
Resistance 1.0200 – 1.0230
Support 1.0130 – 1.0100
AUDJPY
Resistance 83.70 – 83.90
Support 83.10 – 82.90
EURCHF
Resistance 1.0875 – 1.0890
Support 1.0820 – 1.0800
EURGBP
Resistance 0.8530 – 0.8550
Support 0.8450 – 0.8430
EURJPY
Resistance 121.80 – 122.00
Support 120.07 – 119.90
GBPJPY
Resistance 142.90 – 143.10
Support 141.30 – 141.00
GBPCAD
Resistance 1.7420 – 1.7440
Support 1.7320 – 1.7300
GBPCHF
Resistance 1.2770 – 1.2800
Support 1.2710 – 1.2700
Indices
DE30
Resistance 12520 – 12550
Support 12380 – 12360
UK100
Resistance
Support
US500
Resistance 2380 – 2400
Support 2350 – 2340
US30
Resistance 21010 – 21050
Support 20850 – 20800
SA40
Resistance 47000 – 47150
Support 46200 – 46000
Commodities
BRENT
Resistance 52.50 – 52.80
Support 51.80 – 51.50
XAUUSD
Resistance 1280.00 – 1285.00
Support 1260.00 – 1240.00
XAGUSD
Resistance 17.90 – 18.00
Support 17.50 – 17.30
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