Did you know: The Forex or FX Market derives its name from Foreign Exchange. It is essentially the exchange of currency (money) between two different countries. The FX market is the largest financial market in the world, and is open 24 hours per day, 5 days per week. Read More – Introduction To The Forex Market
After the pulled healthcare vote on Friday evening, it was always going to be a tough day for the dollar. There were a lot of gap opens in the major pairs, none of which have closed yet and so there may be some short term opportunity brewing as these gaps may look to close. I am going to be a little more cautious this morning however, the dollar was weak across the board and it was maintained throughout the Asia Pacific session which could mean there is some momentum behind this move.
The healthcare vote on Friday had such little support that it was decided to rather abandon the vote, this was President Trumps first real test since taking office and this defeat will immediately start bringing into question his other mooted policies such as tax reforms. It is less than 100 days into his term, but it would seem as though the honeymoon period is over for Trump – there are even satire doing the rounds branding the President “Do Nothing Donny.”
Dean's Daily FX Update – 27 March 2017
In the Zone
- EURUSD
- GBPUSD
- USDJPY
- USDCHF
- USDZAR
Noteworthy News
- President Trump is set to sign an executive order this morning which will promote oil and other energy prices, this may be supportive for the CAD.
Recap
After the pulled healthcare vote on Friday evening, it was always going to be a tough day for the dollar. There were a lot of gap opens in the major pairs, none of which have closed yet and so there may be some short term opportunity brewing as these gaps may look to close. I am going to be a little more cautious this morning however, the dollar was weak across the board and it was maintained throughout the Asia Pacific session which could mean there is some momentum behind this move.
The healthcare vote on Friday had such little support that it was decided to rather abandon the vote, this was President Trumps first real test since taking office and this defeat will immediately start bringing into question his other mooted policies such as tax reforms. It is less than 100 days into his term, but it would seem as though the honeymoon period is over for Trump – there are even satire doing the rounds branding the President “Do Nothing Donny.”
After such a strong move in the equity market in anticipation of a more market friendly environment, equities are most at risk to move sharply lower this morning. Gold will also see some action as the market looks to some “safe haven” trades, despite both OPEC and non-OPEC countries proposing extended production cuts – the oil price could not bounce which is worrying.
Most the pairs are in technical positions to trade this morning, but I prefer to wait for the dust to settle before I take any positions. I continue to sit out the GBP and EUR this morning as there is fundamental risk in the form of Brexit looming this week.
I mentioned over the weekend that my preferred pair to trade would be the AUD, this morning the AUD was an outlier as it did not strengthen against the dollar. It rather spent the day trading sideways, my gut says that iron ore prices will be under pressure and there may be a little bit of “risk” selling – meaning that traders may prefer to look for opportunity elsewhere for now. This suits me, as when the dust settles it is AUDUSD that may play some catch-up.
For those of you in the market today, be cautious. It is tricky trading in these political driven times.
Daily Ranges 27/03/2017
Majors
EURUSD
Resistance 1.0840 – 1.0860
Support 1.0770 – 1.0750
GBPUSD
Resistance 1.2530 – 1.2565
Support 1.2460 – 1.2440
AUDUSD
Resistance 0.7660 – 0.7680
Support 0.7610 – 0.7590
NZDUSD
Resistance 0.7050 – 0.7070
Support 0.7005 – 0.6980
USDCAD
Resistance 1.3380 – 1.3400
Support 1.3300 – 1.3280
USDJPY
Resistance 111.20 – 111.40
Support 110.20 – 110.00
USDCHF
Resistance 0.9930 – 0.9950
Support 0.9870 – 0.9850
Rand
USDZAR
Resistance 12.5150 – 12.5550
Support 12.3870 – 12.3830
EURZAR
Resistance 13.5050 – 13.5350
Support 13.4000 – 13.3500
GBPZAR
Resistance 15.6270 – 15.6500
Support 15.5050 – 15.4700
Minors
AUDCAD
Resistance 1.0220 – 1.0240
Support 1.0170 – 1.0140
AUDJPY
Resistance 84.90 – 85.10
Support 84.20 – 84.00
EURCHF
Resistance 1.0730 – 1.0740
Support 1.0700 – 1.0680
EURGBP
Resistance 0.8650 – 0.8670
Support 0.8610 – 0.8600
EURJPY
Resistance 120.20 – 120.40
Support 119.50 – 119.30
GBPJPY
Resistance 139.00 – 139.20
Support 138.20 – 138.00
GBPCAD
Resistance 1.6730 – 1.6760
Support 1.6620 – 1.6600
GBPCHF
Resistance 1.2420 – 1.2440
Support 1.2350 – 1.2320
Indices
DE30
Resistance 12060 – 12080
Support 11930 – 11900
UK100
Resistance 7330 – 7340
Support 7280 – 7250
US500
Resistance 2360 – 2380
Support 2330 – 2310
US30
Resistance 20700 – 20730
Support 20500 – 20470
SA40
Resistance 45700 – 45900
Support 45000 – 44800
Commodities
BRENT
Resistance 51.00 – 51.20
Support 50.20 – 50.00
XAUUSD
Resistance 1260.00 – 1275.00
Support 1240.00 – 1220.00
XAGUSD
Resistance 17.80 – 18.00
Support 17.50 – 17.20
Important Economic Data out today
Download Our New Weekly Calendar
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.
