Dean starting to feel more confident about the forex pairs that he watches. Some weak numbers in the US yesterday and bumper GDP numbers for South Africa have moved the FX markets into areas where he is very interested. Already starting to see a number of trades setting up.
Dean's Daily FX Update – 07 September 2016
The EURUSD has got right 1.1250 level we discussed at the beginning of the week. This was an area of resistance and we got there on the back of some poor manufacturing numbers out of the US yesterday. The FX price action seems to suggest that we stalling here with a bearish pin needle candle early this morning. EMAs and stochastics are turning and the MACD is heading towards the waterline.
In Cable (GBPUSD) we are at the top of the recent range. Approaching the moving averages and price is starting to stall. We are starting to see some divergence and Dean feels this could be a key level for this forex pair.
In the AUDUSD, we have come off the resistance level at 0.7690 where we have had 5 attempts in the last 24 hours. It was a level we placed on the charts earlier in the week and prices have already started to come off.
The Kiwi (NZDUSD) was the one forex pair that Dean thought might overshoot recent highs and that is exactly what happened yesterday. It has solidly broken the 0.7360 level after the poor economic numbers in the US. Dean still confident it will come back but there may be some algo-traders who are buying on the back of the break.
The Loonie (USDCAD), we have reached our previous support line at 1.2830 and the price action shows that it could be stalling. The daily chart would suggest that we could see it move a bit lower but Dean will be looking for longs in the near future.
A huge day for the Rand and big GDP numbers gave the short traders and fantastic day. It has bounced a little this morning but not off a significant level. 14.00 is a nice round number but we could see it trade a little lower before it finds support.
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