daily FX market review

Daily Forex Market Review – 10 October 2016

The markets were always likely to be a bit range bound today with the US and Canada enjoying a bit of turkey and cranberry sauce. Both have holidays and we have felt the effects on the FX markets today. Friday gifted us the Non-Farm Payrolls and a little pre and post market volatility. Not much since.

The EURUSD has been softer all day. We opened the trading session around 1.12 and have drifted lower all session. We are still in the middle of the wedge we put in place last week and neither bull nor bear wants to get on the front foot. Let’s hope one of them can break a tackle and move the market in one direction. Resistance at 1.1235 – 1.1267 and support evident at 1.1090 – 1.1139.

The GBPUSD is looking sick. After a flash crash last week sent the Cable to all-time lows, we have seen a little rebound but there does not seem to be much conviction. Forex markets hate uncertainty and this is not exception. Dean has support between 1.2350 – 1.24 and only the brave will be looking for resistance levels.

The Aussie (AUDUSD) has been bobbing around the place like a buoy on a very calm day. A little up and a little down. We opened around 0.76 and are about 10 pips higher so far for the day. With no real interest from US traders, we don’t expect any move out of the ranges this evening. Resistance at 0.7636 and support at 0.7570.

The Kiwi (NZDUSD) is a little softer on the day. We now find ourselves in our resistance range of 0.7120 – 0.7153 and so we may see how traders call it in the morning. Not much news to speak of at this stage to move the market.

The USDCAD is the one significant mover on the day. Flat trade all morning until Vladimir Putin decided to speak up on capping oil production in Russia. This sent oil $2 higher and the CAD a 100 pips lower. That 1.3250 resistance area has been steadfast and we will see whether our support zone around 1.3140 can hold.

One would expect a more interesting days trading tomorrow. The forex markets often go on holiday too when the US are not really in the game. Sometimes better to keep your powder dry until they are back because you don’t want to be on the wrong side of the move when they get back to the office tomorrow.

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