Forex Market Preview

27 September 2016 – Dean Forex Market Commentary

Dean goes back to his ranges that he established on Sunday. There is some interesting price action in a number of the Forex Markets that are catching his eye. Last week Dean nailed the ranges and let’s hope he can do it again.

Dean's Daily FX Update – 27 September 2016

 

On to the EURUSD where is looks like the price action is respecting the upper resistance discussed on Sunday. Our weekly range was 1.1260 – 1.13. We got to 1.1276 yesterday and then has quite a bearish engulfing candle which can signal a change in direction. He would probably like to see how the day closes because of the tight range this FX market is trading in.

In the (GBPUSD) Cable, Dean said he saw support at around 1.2885 but there seems to something a bit higher at 1.2914. We have been there a few times and bounced. On the daily chart, there does not seem to be a lot of conviction from either buy or sellers. Perhaps one to sit out for the moment until we get a bit more of a decisive move, one way or the other.

The AUDUSD is where Dean potentially sees a setup. His preferred range at the start of the week was 0.7635 – 0.7680. We are right in the middle now after a push up this morning but a little cluster of indecision candles may suggest we are running out of momentum to the upside.

In the USDCAD, we had our weekly resistance zone at around 1.3250. We got there late last night, overshot a bit and then straight down. The Governor of the Bank of Canada was speaking last night which may have pushed us a little higher and probably just some traders positioning themselves. A tough one to have picked the top during the speech … one for the “news” traders out there!

Another good one in the USDJPY where we got into the zone at around 100.09 and an immediate bounce. This level has been a tough one to break and looks like it is setting up for another test. There has been some market talk of some traders seeing this all the way down to 90 but with possible BOJ intervention, it is tough one to call.

The rand could be the beneficiary of lower global interest rates. Investors looking for yield could cause the rand to strengthen quite a bit from here. As always, a bounce in USDZAR is only a Zupta moment away.

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.