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The forex market continues to wait on any substantial market news from the President Trump administration, and as we discussed over the weekend, the market is currently confused. The Asian Pacific session confirmed this for me as most pairs are relatively unchanged on the day and the market is clearly waiting on some form of direction. With the exception of a couple FX pairs, all the majors are trading in the middle of the range and so I am hesitant to take any trades before I see what the London session brings with it.
Dean's Daily FX Update – 27 February 2017
In the Zone
- GBPUSD
- USDJPY
- USDZAR
Noteworthy News
- There is continued chatter that Scotland will seek an independence referendum, I am undecided as to what the result of this would be. It does have the ability to weaken the GBP further, so it is something worth casting an eye over.
Recap
The market continues to wait on any substantial market news from the President Trump administration, and as we discussed over the weekend, the market is currently confused. The Asian Pacific session confirmed this for me as most pairs are relatively unchanged on the day and the market is clearly waiting on some form of direction. With the exception of a couple pairs, all the majors are trading in the middle of the range and so I am hesitant to take any trades before I see what the London session brings with it.
Cable was a big mover this morning, there is obviously the impending Brexit that the market is anxiously awaiting, but we did see news over the weekend that Scotland will be pushing for an independence referendum. There is always the threat that Northern Ireland will follow suite but of all the referendums of late, these are the ones that I expect least likely to follow through. I am not an expert on Scottish economics but once isolated from the broader UK economy, I am not sure what Scotland actually offers the EU – I am cautious about this though as last year showed that anything can happen! GBPUSD has bounced at previous support at 1.2400, I suspect that there may be a weak open in London and that sterling gets sold off, I will look at levels between 1.2400 and 1.2350 for first support.
Both the USDJPY and the USDZAR are also showing a little bit of opportunity this morning, they both face their own unique set of weaknesses at present and technically speaking they both look vulnerable to lose ground against the USD today.
I cover these pairs in more detail in the video, there is not much to report on the other major pairs as the ranges narrow leading into President Trumps address to Congress tomorrow. For now I am sticking to my weekly plan, you can read this in the weekend Market Wrap.
Daily Ranges 28/02/2017
Majors
EURUSD
Resistance 1.0600 – 1.0620
Support 1.0540 – 1.0520
GBPUSD
Resistance 1.2500 – 1.2520
Support 1.2400 – 1.2350
AUDUSD
Resistance 0.7700 – 0.7730
Support 0.7670 – 0.7650
NZDUSD
Resistance 0.7220 – 0.7250
Support 0.7160 – 0.7140
USDCAD
Resistance 1.3120 – 1.3150
Support 1.3080 – 1.3060
USDJPY
Resistance 112.60 – 112.80
Support 112.00 – 111.60
USDCHF
Resistance 1.0087 – 1.0100
Support 1.0040 – 1.0020
Rand
USDZAR
Resistance 12.9920 – 13.0330
Support 12.8520 – 12.8270
EURZAR
Resistance 13.7190 – 13.7480
Support 13.6095 – 13.5720
GBPZAR
Resistance 16.2350 – 16.2790
Support 16.0450 – 16.0160
Minors
AUDCAD
Resistance 1.0090 – 1.0120
Support 1.0055 – 1.0040
AUDJPY
Resistance 86.70 – 87.00
Support 86.20 – 86.00
EURCHF
Resistance 1.0650 – 1.0680
Support 1.0630 – 1.0610
EURGBP
Resistance 0.8510 – 0.8540
Support 0.8425 – 0.8410
EURJPY
Resistance 119.20 – 119.40
Support 118.40 – 118.10
GBPJPY
Resistance 140.90 – 141.10
Support 139.20 – 139.00
GBPCAD
Resistance 1.6390 – 1.6420
Support 1.6270 – 1.6220
GBPCHF
Resistance 1.2595 – 1.2610
Support 1.2520 – 1.2500
Indices
DE30
Resistance 11900 – 11950
Support 11840 – 11800
UK100
Resistance 7270 – 7300
Support 7240 – 7220
US500
Resistance 2360 – 2390
Support 2340 – 2320
US30
Resistance 20800 – 20850
Support 20700 – 20650
SA40
Resistance 45300 – 45500
Support 44600 – 44400
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
Important Economic Data out today
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