A very quiet afternoon session was evident by the small daily ranges, except for the USDCAD, it was obvious that traders were not willing to stake large positions without the US to continue any momentum.
Dean's Daily FX Update – 11 October 2016
In the Zone
- AUDUSD
- USDJPY
- USDCHF
Noteworthy News
- Comments from Vladimir Putin stating, “Russia are willing to freeze or even cut output with OPEC,”. This will have a positive effect on oil prices and could possibly see other non OPEC (Organization of the Petroleum Exporting Countries.) following suit.
- There are rumours circulating that a “Hard Brexit” could cost the UK GPB 60bln per year in taxation revenue, this could send the GBPUSD lower.
Recap
Last week the CAD raised red flags in that it was unable to strengthen despite stronger oil prices, yesterday was a completely different animal. One comment (noted above) was enough to send the USDCAD downwards into a tornado like spiral, it broke major support at 1.3200 and only found a base at 1.3130. The extent of this move could be due to very little liquidity in the market, but I suspect that 1.3200 could change polarity and become resistance.
The EURUSD closed the day on our triangle parameter, I am left asking myself this morning – is this the day that this pair breaks?” Early morning price action suggests that no one is willing to be the pace maker here. We are straddling support at 1.1120 and so I will wait to see if we are able to break through this support level or retreat back into the confines of our triangle.
The only other pair worth an honourable mention today is the NZDUSD, I sat patiently waiting for support at 0.7100 to look for a long set up. Instead the pair continued its push lower, we haven’t seen these levels since May, it is trading well below both the Fib levels and our weekly zone and I will leave this pair for now (let someone else pick the bottom).
The USDJPY looks like we might get another test of the 104.15. I am seeing some divergence but what concerns me is the EMA’s have not started to turn. I will be watching the this pair carefully to see if it fails to follow through with the up trend.
Daily Ranges
EURUSD
Resistance 1.1169 – 1.1185
Support 1.1135 – 1.1115
GBPUSD
Resistance 1.2434 – 1.2460
Support 1.2300 – 1.2280
AUDUSD
Resistance 0.7600 – 0.7610
Support 0.7550 – 0.7530
NZDUSD
Resistance 0.7140 – 0.7160
Support 0.7063 – 0.7040
USDCAD
Resistance 1.3220 – 1.3250
Support 1.3180 – 1.3150
USDJPY
Resistance 103.99 – 104.20
Support 103.15 – 103.01
USDCHF
Resistance 0.9835 – 0.9850
Support 0.9788 – 0.9770
USDZAR
Resistance 13.9434 – 13.9800
Support 13.7587 – 13.7000
Important Economic Data out today
11:00 EUR German ZEW Economic Sentiment
High Risk Investment Warning: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. Before deciding to trade the products offered by BlackStone Futures you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. BlackStone Futures provides general advice that does not take into account your objectives, financial situation or needs. The content of this Website must not be construed as personal advice. BlackStone Futures recommends you seek advice from a separate financial advisor. Please take the time to read our Risk Disclosure Notice.
