Dean is focused on opportunities in the GBPUSD, AUDUSD and the USDCAD today. There is a lots of economic news flow out this afternoon with Retail Sales and Unemployment Data so could be a great opportunity to look for setups in the FX market.
Dean's Daily FX Update – 15 September 2016
The EURUSD has been very range bound this week. The Bollinger bands have really tightened up and we moved our support and resistant zones to reflect this. We had a bounce off the lower support and up to the resistance and straight back down. The ranges are too tight for Dean to trade this FX pair and will wait for a decent break before looking again.
Cable (GBPUSD) had a little bounce yesterday which could have yielded 50 pips but we have traded back and now in an area of interest for Dean. He will be looking for reasons to be long and feels we could get a move upwards. Keeping a close eye out.
The AUDUSD has overshot the zone we put in place. There is some divergence forming between the market direction and the MACD. A favorite of Dean’s indicators of a change in polarity so observing closely. 0.7450 has provided support all week.
For the Kiwi (NZDUSD), Dean is a little uncertain. 0.7225 has provided some decent support going back a few weeks so would like to believe the move down may be over. He feels there are some better trades out there but a long setup could be on the cards.
The USDCAD looks heavily overbought. It has been moving on the back of a weaker oil prices and a stronger dollar. There is also some divergence forming and by using Fibonacci levels, Dean potentially sees a 200+ pip move.
The USDJPY would have been the trade of the day yesterday. Dean said look for the 103.30 resistance to hold and it duly did. The forex pair came off and bounced of a resistance at 101.93. Back in the middle of a range but potentially a 100 pip trade.
The USDZAR is in the middle of a tight range with Bollinger bands tightening and few opportunities being spotted at the moment.
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