Not a very exciting day for Forex trading as the JSE comes to a close. Not many solid trading setups. A choppy range bound market across the board. We saw a weaker Dollar compared to yesterday's sell-off on the GBP. A lack of price action should have kept traders out of the market until clear direction was shown.
The EURUSD traded within yesterday's range 1.1260 (High) – 1.1203 (Low). As of yet, the ADR has not been reached (73pips), running only 44pips from high to low. Pre-New York open the Fibre was still trading in the Asian session range with mixed indications to where price is heading. The EURO still seems to be the strongest of the FX pairs, gaining ground on the USD. As the New York session pans out we might see a classic reversal pushing the price back into London range. 1o Min before the JSE close a huge 15min Bearish pin bar has formed, further validating the possibility of the above mentioned.
The Cable (GBPUSD) did much better, showing some resistance to yesterday's disappointing economic data. The Pound showed positive bullish movement right through Asian session with momentum building during London. The Cable started to lose ground against the USD running into the pre-NY session. We saw a 47pip NY reversal which currently pushed the price (1.3177 Area) back into Asian territory. Like with the EURO the GBP has not been able to complete its ADR of 115pips. Price is clearly being manipulated around the big round numbers (BRN) at the 1.32000 level. Evidence of this can be seen on the charts as supply and demand balance out to see who crumbles first.
Nothing special to mention on the Aussie (AUDUSD). Very similar price action as the above-mentioned pairs. A clear struggle between the bulls and bears. The ADR (78pips) has not been reached and is unlikely to do so. Price is trading in a very narrow range. Just like the GBP the AUD is also trading back into the Asian range searching for some much-needed liquidity.
The Loonie lost some more ground to the USD, continuing its move to the upside. 80% of the USDCAD ADR has been completed as of 17:10PM. Mixed reactions as the New York sessions plays out. Some resistance was found at 1.320 level. This further confirms the fact the Big Round Numbers attract price has there should be orders/liquidity around these levels.
The Yen (USDJPY) is trading right at the open of the Asian session, making no real ground against the Dollar. The Yen has come much closer to reaching its ADR at 113pips (Currently at 105pips). Yesterday's low seems to be the most likely point of support at 102.215. There was a nice trading opportunity pre-London open for a short, driving price all the way down to the 102.454 area (80pip Trade).
The RAND failed to make it out of yesterday's range. It has been very much range bound throughout the day but seems to be holding up against the USD. The USDZAR found support Pre-NY session at 14.40 before price declined and dropped further into the 14.229 area. 14 Day Period ADR is currently at 3079pips with the ZAR only completing 2249pips from high to low.
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.
