daily FX market review

Daily Forex Market Review – 04 October 2016

Dean was only looking at two FX pairs today for potential trades. The NZDUSD and the AUDUSD. He was also keeping an eye on GBPUSD to see if the blood-letting would subside. The forex markets can be unforgiving at times and the threat of Article 50 being invoked has created a lot of uncertainty.

In the EURUSD, Dean was calling for the market to trade between 1.1219 and 1.1150 as our resistance and support areas suggested. We never saw the top but we got down to 1.1137 which will probably start to interest him a little with an expectation of a bounce. We did see a slightly bigger range of 73 pips against the average daily range of 51. If we can widen the range, Dean will be more interested.

Cable (GBPUSD) has pretty much traded in a straight line down all day. The resistance we used over the weekend has not held and there have been no reasons to try and catch this falling knife! We are at the lows for the day at 1.2740. Without some consolidation, we would not advise any buying at these levels and Dean may look to enter shorts at the previous resistance of 1.2865.

The AUDUSD has also been weak all day. Dean was looking to get short around 0.77 and let’s hope he got in. We did not quite get there this morning but the Aussie has vulnerable after some dovish RBA announcement this morning from Governor Lowe. Support could be quite a bit lower so if you are short then make sure you put in the trailing stops.

A very early morning rally in the NZDUSD was quickly extinguished. This may be on the back of the Aussie comments and they can follow the same direction. We are currently trading 0.7245 after trading as high as 0.7310.

The Loonie or USDCAD is a puzzling one at the moment. We would have expected it to trade a lot stronger today with the oil price powering ahead. We got a move higher this morning and should have triggered a few shorts in our area of resistance, 1.3170 – 90. Currently trading 1.3160 and how it is still so high, no one is sure.

The USDJPY will almost certainly be on Dean’s radar tomorrow. We are trading 102.65 and entered his near term resistance. There has been dollar strength across most forex markets but this could be overdone short term.

The USDZAR has traded sideways all day and one to keep away from at the moment. Better trades elsewhere with better risk return ratios.

Data looks “lite” tomorrow with only the ISM Manufacturing Number out in the US likely move the markets.

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.