Dean's Daily FX Update – 26 October 2016
In the Zone
- AUDUSD
- USDCAD
- USDCHF
- USDJPY
Noteworthy News
- As if there was not enough tension around the current political landscape in South Africa, and in particular today's Mid Term Budget Speech. Protesting students in the #FeesMustFall Campaign (remember them?) plan to protest at Parliament during the speech.
Recap
The market is still looking for reasons to make a break for it, yesterday was characterised by early USD strength but it lost its mojo with softer consumer confidence data. Deteriorating equity market sentiment did not help either, just as you thought the Dollar would start selling off it found a late bid – very indecisive.
GBPUSD was the early morning catalyst yesterday as various technical levels and stop losses were breached and drove cable to trade below 1.2200 – the weakest levels since the flash crash. One gets the feeling that BOE Governor Carney comments, which came across as a little hawkish, was behind the 50 pip rally late last night. Yesterdays move reiterated two things to me, firstly the market is looking for a reason to short this pair, and secondly I would not want to be trying to find a bottom in GBPUSD.
There were attempts of a EURUSD rally yesterday, the market needed to close above 1.0900 to get me interested, but it came off again late last night. The EUR will make another attempt higher today ,but for now 1.0900 handle looks to be building some strong resistance – a level to keep an eye on today.
Better than expected inflation data out the AUDUSD and breach of stop losses was the facilitator for the Aussie to trade higher, 0.7700 still seems to be the ceiling on this pair and we will cover it more in the video this morning.
Daily FX Ranges
EURUSD
Resistance 1.0895 – 1.0910
Support 1.0860 – 1.0840
GBPUSD
Resistance 1.2200 – 1.2240
Support 1.2140 – 1.2100
AUDUSD
Resistance 0.7690 – 0.7708
Support 0.7617 – 0.7600
NZDUSD
Resistance 0.7168 – 0.7186
Support 0.7133 – 0.7115
USDCAD
Resistance 1.3370 – 1.3387
Support 1.3317 – 1.3300
USDJPY
Resistance 104.52 – 104.70
Support 104.00 – 103.80
USDCHF
Resistance 0.9950 – 0.9975
Support 0.9930 – 0.9914
USDZAR
Resistance 13.8813 – 13.9100
Support 13.7900 – 13.7400
Important Economic Data out today
- 16:00 USD New Home Sales
- 16:30 USD Crude Oil Inventories
High Risk Investment Warning: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. Before deciding to trade the products offered by BlackStone Futures you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. BlackStone Futures provides general advice that does not take into account your objectives, financial situation or needs. The content of this Website must not be construed as personal advice. BlackStone Futures recommends you seek advice from a separate financial advisor. Please take the time to read our Risk Disclosure Notice.
