The Forex Markets have been very tame today and we have seen extremely small ranges among most of the FX pairs we follow. Very little news out today with only the US Durable Goods Orders of any significance and Janet Yellen testifying before the House. We will have to see if her comments have any affect later in the day. Probably the same measured drivel we got after the FOMC meeting last week.
The EURUSD has traded between 1.1181 and 1.1236 today so a small range of 50 pips. We did not get up to Dean’s 1.1250 where he would have considered short positions. The range has really narrowed and considering the average daily range (ADR) is 60 we are a bit below that. Possibly one to wait for a break of this range before getting involved.
We have seen a bit of dollar strength come back to the market in afternoon trade. The GBPUSD has traded between 1.3031 and 1.2979. Right in the middle of Dean’s ranges so nothing done in this pair. He was hoping for a bit of a rally so he could look for short opportunities and trade them down towards near term support of 1.2914 and possibly 1.2865. The ADR is 100 pips and we have traded in a 50 pip range. Not many opportunities here.
Dean’s preferred trade today was in the AUDUSD. He was looking to get short around resistance of 0.7635 – 0.7680. Some of the bearish price action this morning would have probably got Dean short and he is likely running a trailing stop.
The NZDUSD has been weak all day and trading near the lows for the day. Dean had no interest in this pair today as it was right in the middle of the ranges we introduced on Sunday. As it trades towards 0.72, I think we may see some interest from the long side. The NZ Central Bank has been making some noises and they would prefer to see a weaker NZD so may trade lower.
In the morning FX video, Dean was looking for shorts on the USDCAD. Slightly cautious about the OPEC meeting but 1.3250 has proved strong resistance. We traded up to 1.3268 after bobbing around 1.32 for the morning. Currently off the highs and will be watching the price action and also that of oil. Stronger oil normally means stronger CAD.
Dire action in the USDJPY today. It looks like traders have rather gone for sushi and sake as no one seems interested in moving this currency. 40 pip range against an average of 100+.
The Rand (USDZAR) was not able to break the 13.39 level with any conviction and currently trading near the highs for the day at 13.68. Dean was hoping for a move to 13.19 so that he could look to get long. Perhaps later in the week but nothing done for now.
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