Yesterday it was the summons of Pravin Gordhan and today it looks like Abrahams is prepared to reconsider. What South Africa must look like to the rest of the world is anyone’s guess? Then I suppose they don’t really care! We are doing a great job of embarrassing ourselves further by the lack competence at the highest levels.
As a new feature we have initiated coverage on the DAX, S&P, Gold and Brent … check those out on our YouTube channel.
On to the forex markets where the EURUSD had continued to trade lower today. We opened the day around 1.1060 and have traded down to almost 1.10 the figure. Continued dollar strength seems to be dominating proceedings and the Euro is getting hammered too. Dean’s support at 1.1034 – 1.1049 has been broken and it looks like the next technical level is around 1.0950. Markets often hang around big figures and we may find a bit of support at 1.10.
A rally in Sterling (GBPUSD) yesterday afternoon and evening looked like we may have put in a bottom in this FX pair. This was short lived and we are trading lower again today. Dean has a broad support range of 1.2150 – 1.22 and we are in the middle of the zone now.
The AUDUSD was on Dean’s watch list this morning. Dean was looking for a second opportunity to get long this pair around his support zone of 0.7540 – 0.7563. He may have only got a signal late this afternoon and we will wait to hear how this one plays out. I would imagine the initial target would be around 0.76.
Dean was hoping to get short of the USDCHF. One he does not normally trade because of the Swiss National Bank who is happy to manipulate this market. He saw major resistance around 0.9877 – 0.99. We are a little higher than that now so it is unlikely that a trade triggered for him. I am sure he will be looking again tomorrow.
Dollar strength has also messed with our level of 104 in the USDJPY. We are now comfortably above that and this should be off the table for now from the short side. Likewise, the Kiwi is looking weak against the dollar and 0.6950 is the next technical level we see.
The RAND is one to stay well clear of. In the last hour we have heard rumours that the NPA may reconsider their position and so the market has traded from 14.35 to 14 and back to 14.25 against the USD.
It seems dollar strength and the political shenanigans will be the dominant players over the next few days. Don’t forget, we have initiated coverage on the DAX, S&P, Gold and Brent so check those out tomorrow on our YouTube Channel. Subscribe and be alerted as soon as they are available!
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