After a couple of days of lagging, the dollar staged a modest fightback yesterday, just enough to keep the market ticking. Both the equity markets and the bonds continued its recent march but the momentum is definitely slowing.
Dean's Daily FX Update – 27 January 2017
In the Zone
- GBPUSD
- NZDUSD
- USDJPY
Noteworthy News
- Mexican President Pena-Nieto cancelled all meetings with President Trump after it was announced that a border wall will be built. This is the first evidence that other countries will not stand for the absurd from Trump and don’t be surprised if this is the start of a trend.
Recap
After treading water the EURUSD finally broke through support, it was aided by a more dovish tone out of Germany. 1.0650 will a key level this morning, this was a key resistance level a couple of weeks ago and if we close lower, the sellers could take this pair back towards 1.0600.
Despite the oil prices trading higher than 2%, the USDCAD battled to make any ground – it was up by only 40 pips on the day. The pair did have a slight blip in the New York session to trade as low as 1.3050 but there seems to be some nice support at those levels and closed at 1.3100. I suspect that this pair may continue its move upwards first thing this morning but don’t be surprised if the sellers come back into the market later this afternoon.
The AUDUSD lost some ground yesterday in correlation with gold, I would look for this pair as a trading opportunity next week.
President Trump has been a busy man in his first week – yet the market are still undecided. He will have to soften his tone a little bit and realise that the rest of the world will not bow to his every demand, yesterday was a perfect example – Mexico has refused to pay for any border wall, and the Mexican President just refused to meet with Trump. It’s early in his presidency, but he risks isolating both himself and the US. I am hesitant to jump in to the dollar just yet, despite the strength yesterday – it does look a tad vulnerable.
Daily Ranges 27/01/2017
Majors
EURUSD
Resistance 1.0720 – 1.0750
Support 1.0650 – 1.0600
GBPUSD
Resistance 1.2660 – 1.2700
Support 1.2550 – 1.2520
AUDUSD
Resistance 0.7560 – 0.7580
Support 0.7515 – 0.7500
NZDUSD
Resistance 0.7280 – 0.7300
Support 0.7230 – 0.7200
USDCAD
Resistance 1.3142 – 1.3160
Support 1.3070 – 1.3050
USDJPY
Resistance 115.00 – 115.30
Support 113.80 – 113.50
USDCHF
Resistance 1.0020 – 1.0030
Support 0.9960 – 0.9945
Rand
USDZAR
Resistance 13.3862 – 13.4380
Support 13.2450 – 13.2050
EURZAR
Resistance 14.3350 – 14.3680
Support 14.1900 – 14.1500
GBPZAR
Resistance 16.8450 – 16.8720
Support 16.6870 – 16.6330
Minors
AUDCAD
Resistance 0.9910 – 0.9920
Support 0.9850 – 0.9830
AUDJPY
Resistance 86.35 – 86.60
Support 85.70 – 85.40
EURCHF
Resistance 1.0720 – 1.0750
Support 1.0680 – 1.0650
EURGBP
Resistance 0.8530 – 0.8560
Support 0.8460 – 0.8440
EURJPY
Resistance 122.70 – 122.85
Support 121.80 – 121.50
GBPJPY
Resistance 144.40 – 144.70
Support 143.10 – 143.00
GBPCAD
Resistance 1.6540 – 1.6560
Support 1.6440 – 1.6420
GBPCHF
Resistance 1.2630 – 1.2650
Support 1.2550 – 1.2530
Indices
DE30
Resistance 11870 – 11890
Support 11760 – 11730
UK100
Resistance 7180 – 7210
Support 7140 – 7100
US500
Resistance 2300 – 2320
Support 2280 – 2260
US30
Resistance 20130 – 20160
Support 19900 – 20000
SA40
Resistance 47000 – 47300
Support 46600 – 46300
Commodities
BRENT
Resistance 56.20 – 56.40
Support 55.20 – 55.00
XAUUSD
Resistance 1195.09 – 1200.00
Support 1180.00 – 1170.20
XAGUSD
Resistance 16.90 – 17.10
Support 16.60 – 16.40
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