The EURUSD (Fiber) has been stuck in a ranging market condition, moving back into the Asian session range. As the JSE closed the EURUSD has only moved 43pips from high to low. The current 14 Day Period Average Daily Range (ADR) on this Forex pair is currently sitting at 74.5pips. The last completion of the ADR was seen last Friday moving beyond 80+ pips. The EURO seems to be the major range bound pair. Still no clear direction as the EURO is holding strong again the United States Dollar.
The Cable (GBPUSD) has had major sell off due to some inflation data (CPI) and retail sales that seem to have disappointed. We saw the Pound crush its ADR, running down 164pips to the downside. Current 14 Period ADR is 110pips. We saw some support at the 1.33 level (Big Round Number) as well as some resistance, breaking through the 1.32 level during the NY session. A clear place where the market found some liquidity. As of current, the GBP seems to be running full steam as prices keep on declining.
The Assie (AUDUSD) smashed its ADR of 72pips early during the New York session. We are in a clear liquidity zone at 0.75 which seems to be the next resistance level and also a few pips above the previous day's low if price decides to retrace later in the session. Unlike the GBP the AUD has held up against the USD with bulls and bears fighting it out.
The Kiwi (NZDUSD) completely fell apart breaking through the minor support level set by Dean in this morning's Market Preview. The 0.73 level acted as a support structure before the level was taken out with a bearish engulfing candle, showing some serious selling power after the small rally we saw early during the London session. The NZD broke through yesterday's lows as well as the ADR (81pips) low at 0.7281 area in the opening hours of the NY session. At this current time, we are seeing a hefty fight between buyers and sellers. Sellers should take over and continue this move downwards.
The USDCAD (Loonie) is showing similar results with the Dollar strength. We saw a 142pip (ADR 93pips) move from high to low. Yesterday's high did not hold up as resistance as price shot through pre-NY market open. Price however, come back to test the 1.3123 level which acted as support before price moved higher. Price is currently consolidating around the 1.316 level. Could this be a short pause before we see another rally?
The ZAR (USDZAR) failed to complete its ADR of 3000pips as things stand at 17:45PM. We saw higher highs and lower lows running into the London session with price spiking pre-New York open. Although we see signs of a bullish market intraday, things can surely change on a dime as the NY session pans out.
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