Hopefully everyone is back from their summer holidays and we can start to get some direction for the markets and how they might play out for the rest of the year. Dean is always frustrated during the summer period and better liquidity should be returning to the Forex market.
Dean's Daily FX Update – 06 September 2016
From Sunday’s rap, Dean has put in some levels in the EURUSD (Fiber) which he thought would be good areas to watch for this week. 1.1250 is a level where he would be starting to look for shorts in this FX pair.
Cable (GBPUSD) has reached a level where Dean is starting to look at shorts from these levels around 1.3330. Feels there may be a little gas left in the pound but EMAs are starting to cross, the MACD is approaching the waterline and the stochastics have started to turn.
Dean feels he has missed the long in the AUDUSD (Aussie) and so is inclined to rather look for shorts and some resistance around the 0.7690 level. There was some event risk this morning with the rate decision and it may have a little further to run on the long side and when the Forex traders in the States get into the office.
The Kiwi (NZDUSD) is right at the top of its recent range but Dean would prefer to sit out of this one for the moment. Event risk in the form of Dairy Prices being released this afternoon and these could push this forex pair through the resistance at 0.7370.
Like the Kiwi, Dean has missed the short trade in the Loonie (USDCAD) and so inclined to wait and look for longs around the 1.2850 level. Remember to look at the oil price because of the strong correlation that exists between the two.
In the USDZAR (Rand), we have had a decent pull back and Dean has put a support and target level of 13.80 where those that are short should look to exit or use a trailing stop and where Dean will be looking to take long positions.
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