Did you know: The Forex or FX Market derives its name from Foreign Exchange. It is essentially the exchange of currency (money) between two different countries. The FX market is the largest financial market in the world, and is open 24 hours per day, 5 days per week. Read More – Introduction To The Forex Market
Dean's Daily FX Update – 03 May 2017
In the Zone
- EURUSD
- GBPUSD
- USDCAD
- USDJPY
- USDZAR
Noteworthy News
- Putin and Trump discussed coordinating efforts in Syria and also around the Korean peninsula. There is a scheduled meeting in July – I wonder who is going to flinch first.
Recap
The day after a long weekend can always be a little bit “hit or miss” as the different financial centres pass the buck to lead the market. We also had a holiday in Japan and Hong Kong today and so this morning was subdued in the Asian Pacific session. I suspect that today may be order driven as speculators may sit on the side before the FOMC statement at 20:00 tonight. There is no press conference tonight and so I think the rates will be left on hold, instead we will eagerly await the language of the statement for clues on decreasing the Feds balance sheet.
We have some further event risk on Friday in the form of the NFP and a speech by Fed Chair Yellen on Friday evening. Although the market will be waiting for this evening, I suspect that the speech on Friday will be more important than tonight.
The EURUSD has formed a tight range over the last 10 days, we have some clear support at 1.0875 and the top side resistance trades at 1.0925. Although the close above resistance is a bullish signal and we could possibly target 1.0950, there is a lot of event risk this week in the form of ECB speeches and of course the French Presidential election this weekend. The market may stutter until the results of that election are known.
Reports in UK publications this morning may put the GBPUSD under a little bit of pressure today. There are talks that PM May will not be able to play negotiator and that the EU will be seeking a EUR 100m settlement which is almost double the initial quote. PM May will need a resounding victory at the polls next month, I think that the EU have now played their hand (perhaps a little too early) and if May wins this election then Brexit is going to be extremely soft. The bulls remain in charge here for now but I am still hesitant to trade this pair as there is short term volatility expected.
The USDCAD continues to trade higher in direct correlation with an ailing oil price. Libya are talking about peace and cutting back on their production, but Saudi Arabia put a dampener on the smaller producers spirits when they noted they have budgeted the oil price at $45. The smaller nations can’t survive with oil at this price, this may put the oil price under further pressure. It is too early to tell if this is the peak in USDCAD, I am trading this off the daily chart and will use a combination of Fibonacci and divergence to dictate my entry.
Daily Ranges 03/05/2017
Majors
EURUSD
Resistance 1.0930 – 1.0950
Support 1.0880 – 1.0860
GBPUSD
Resistance 1.2940 – 1.2960
Support 1.2890 – 1.2870
AUDUSD
Resistance 0.7540 – 0.7560
Support 0.7500 – 0.7480
NZDUSD
Resistance 0.6940 – 0.6960
Support 0.6900 – 0.6880
USDCAD
Resistance 1.3730 – 1.3750
Support 1.3650 – 1.3620
USDJPY
Resistance 112.20 – 112.40
Support 111.40 – 111.20
USDCHF
Resistance 0.9950 – 1.0000
Support 0.9920 – 0.9900
Rand
USDZAR
Resistance 13.4100 – 13.4400
Support 13.3050 – 13.2670
EURZAR
Resistance 14.6140 – 14.6440
Support 14.4960 – 14.4500
GBPZAR
Resistance 17.3030 – 17.3500
Support 17.1350 – 17.0950
Minors
AUDCAD
Resistance 1.0320 – 1.0350
Support 1.0270 – 1.0250
AUDJPY
Resistance 84.40 – 84.60
Support 83.90 – 83.70
EURCHF
Resistance 1.0860 – 1.0880
Support 1.0820 – 1.0800
EURGBP
Resistance 0.8460 – 0.8480
Support 0.8420 – 0.8400
EURJPY
Resistance 122.60 – 122.80
Support 121.60 – 121.30
GBPJPY
Resistance 145.10 – 145.30
Support 144.20 – 144.00
GBPCAD
Resistance 1.7730 – 1.7750
Support 1.7640 – 1.7620
GBPCHF
Resistance 1.2840 – 1.2870
Support 1.2760 – 1.2740
Indices
DE30
Resistance 12530 – 12560
Support 12430 – 12410
UK100
Resistance
Support
US500
Resistance 2390 – 2400
Support 2350 – 2340
US30
Resistance 21010 – 21050
Support 20850 – 20800
SA40
Resistance 47600 – 47850
Support 46400 – 46200
Commodities
BRENT
Resistance 51.50 – 51.80
Support 50.90 – 50.70
XAUUSD
Resistance 1260.00 – 1270.00
Support 1250.00 – 1230.00
XAGUSD
Resistance 17.10 – 17.30
Support 16.90 – 16.70
Download Our New Weekly Calendar
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.
