Dean describes his weekly FX ranges and how doing the preparation has allowed him to look at price action and make trading decisions.
Dean's Daily FX Update – 28 September 2016
The EURUSD resistance range was 1.1250 – 1.13 at the beginning of the week. We got into that range and the market turned at 1.1278 with a number of bearish candle formations giving you the clue. Bearish pin-needle would have given you around 50 pips. Dean looking elsewhere today.
Dean’s preferred entry for a long in GBPUSD is around 1.2865. There is support forming at 1.2914 but Dean would rather wait for this forex pair to rally a bit before looking for shorts.
The trade Dean was looking for yesterday was the AUDUSD. The price was right in his resistance area (0.7635 – 0.7680) and he was looking for shorting opportunities. A bearish pin-needle on the hourly chart gave Dean his entry. 40 pips banked. He is looking again for shorts today as he sees divergence forming and a number of other indicators.
In the NZDUSD, Dean had resistance at 0.7380 and support at 0.7217. For him is trading in no man’s land and will be sitting out.
USDCAD was another of Dean’s preferred trades yesterday. 1.3250 has been a huge resistance level. A spinning top and a bearish engulfing candle gave Dean the first clue. He expects this pair to trade lower but keep an eye on the oil price. Strength in the oil price should support his view. There are OPEC meetings taking place so look out for news on that front.
Dean will only look at the Yen (USDJPY) if it gets back down to the 100.09 area. The resistance is much higher up and so happy to sit out.
The USDZAR is also one he is not looking at until we get down to the low of the year at 13.19 where he would consider longs. He will watch the price action before making a call.
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