Forex Market Preview

27 January 2017 – Dean Forex Market Commentary

After a couple of days of lagging, the dollar staged a modest fightback yesterday, just enough to keep the market ticking. Both the equity markets and the bonds continued its recent march but the momentum is definitely slowing.

Dean's Daily FX Update – 27 January 2017

In the Zone

  • GBPUSD
  • NZDUSD
  • USDJPY

Noteworthy News

  • Mexican President Pena-Nieto cancelled all meetings with President Trump after it was announced that a border wall will be built. This is the first evidence that other countries will not stand for the absurd from Trump and don’t be surprised if this is the start of a trend.

Recap

After treading water the EURUSD finally broke through support, it was aided by a more dovish tone out of Germany.  1.0650 will a key level this morning, this was a key resistance level a couple of weeks ago and if we close lower, the sellers could take this pair back towards 1.0600.

Despite the oil prices trading higher than 2%, the USDCAD battled to make any ground – it was up by only 40 pips on the day. The pair did have a slight blip in the New York session to trade as low as 1.3050 but there seems to be some nice support at those levels and closed at 1.3100. I suspect that this pair may continue its move upwards first thing this morning but don’t be surprised if the sellers come back into the market later this afternoon.

The AUDUSD lost some ground yesterday in correlation with gold, I would look for this pair as a trading opportunity next week.

President Trump has been a busy man in his first week – yet the market are still undecided. He will have to soften his tone a little bit and realise that the rest of the world will not bow to his every demand, yesterday was a perfect example – Mexico has refused to pay for any border wall, and the Mexican President just refused to meet with Trump. It’s early in his presidency, but he risks isolating both himself and the US. I am hesitant to jump in to the dollar just yet, despite the strength yesterday – it does look a tad vulnerable.

Daily Ranges 27/01/2017

Majors

EURUSD

Resistance                                          1.0720 – 1.0750

Support                                                1.0650 – 1.0600

GBPUSD

Resistance                                          1.2660 – 1.2700

Support                                                1.2550 – 1.2520

AUDUSD

Resistance                                          0.7560 – 0.7580

Support                                                0.7515 – 0.7500

NZDUSD

Resistance                                          0.7280 – 0.7300

Support                                                0.7230 – 0.7200

USDCAD

Resistance                                          1.3142 – 1.3160

Support                                                1.3070 – 1.3050

USDJPY

Resistance                                          115.00 – 115.30

Support                                                113.80 – 113.50

USDCHF

Resistance                                          1.0020 – 1.0030

Support                                                0.9960 – 0.9945

Rand

USDZAR

Resistance                                          13.3862 – 13.4380

Support                                                13.2450 – 13.2050           

EURZAR

Resistance                                          14.3350 – 14.3680

Support                                                14.1900 – 14.1500

GBPZAR

Resistance                                          16.8450 – 16.8720

Support                                                16.6870 – 16.6330

Minors

AUDCAD

Resistance                                          0.9910 – 0.9920

Support                                                0.9850 – 0.9830

AUDJPY

Resistance                                          86.35 – 86.60

Support                                                85.70 – 85.40

EURCHF

Resistance                                          1.0720 – 1.0750

Support                                                1.0680 – 1.0650

EURGBP

Resistance                                          0.8530 – 0.8560

Support                                                0.8460 – 0.8440

EURJPY

Resistance                                          122.70 – 122.85

Support                                                121.80 – 121.50

GBPJPY

Resistance                                          144.40 – 144.70

Support                                                143.10 – 143.00

GBPCAD

Resistance                                          1.6540 – 1.6560

Support                                                1.6440 – 1.6420

GBPCHF

Resistance                                          1.2630 – 1.2650

Support                                                1.2550 – 1.2530

Indices

DE30

Resistance                                          11870 – 11890

Support                                                11760 – 11730

UK100

Resistance                                          7180 – 7210

Support                                                7140 – 7100

US500

Resistance                                          2300 – 2320

Support                                                2280 – 2260

US30

Resistance                                          20130 – 20160

Support                                                19900 – 20000

SA40

Resistance                                          47000 – 47300

Support                                                46600 – 46300

Commodities

BRENT

Resistance                                          56.20 – 56.40

Support                                                55.20 – 55.00

XAUUSD

Resistance                                          1195.09 – 1200.00

Support                                                1180.00 – 1170.20

XAGUSD

Resistance                                          16.90 – 17.10

Support                                                16.60 – 16.40

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