We had a great day on Cable (GBPUSD) with 200+ pips. Watch the report to see how we entered the market and for the signals we took.
Dean's Daily FX Update – 07 December 2016
In the Zone
- EURUSD
- USDCAD
- USDZAR
Recap
The USD was slightly stronger again yesterday, but for the most part the gains were limited. The market is starting to become slightly quiet ahead of interest rate decisions. We have the BOC (Bank of Canada) today, the ECB tomorrow and also the highly anticipated FOMC next week.
It was interesting that the Economic Optimism Index was a lot better than expected, the market is obviously expecting some good things to come from Donald Trump. I must admit though, his method of communication over Twitter is a little bit unorthodox and I don’t feel he fully understands yet the magnitude his words as President can have – it could come back to haunt him one day!! Regardless of that, it was announced that Trump had negotiated a deal with Softbank that would see 50,000 jobs created and an investment of $ 50B. This is precisely what the people want to see, the business man negotiating deals.
I cover the EURUSD in a little bit more detail this morning but I would expect the pair to form a tight range until the ECB meeting tomorrow. 1.0700 remains a key level, and with the expectation that the ECB will announce further QE, the USD bulls may attempt to break through that support level and trade lower tomorrow. The next major support only comes in at 1.0650.
We had a great day yesterday in cable, it was one of the pairs that we were looking to make a little bit of profit on. The GBPUSD did manage to trade as high as 1.2780, keep in mind that we had divergence but we also noted that the 100 day MA was around 1.2790 – a level that sterling has not traded above since Brexit. We were able to lean against that level, and like moth to a flame, as price got to these levels traders immediately took profit and we were able to make close on 100 pips in this pair. The level to watch today will be 1.2650 to see if we are able to find support there.
The USDJPY is becoming a little indecisive at this point and the market remains poised to make a break. It traded in a tight 70 pip range for the day yesterday, look for a break either above 114.20 for a bullish signal or below 113.30 for a bearish signal.
In line with our comments yesterday, the NZDUSD has been rather muted in trading but the AUDUSD has been a little bit lively today. The Aussie GDP missed expectations and had its first negative reading since 2011, this set the AUDUSD tumbling by over 50 pips and I would imagine it to be firmly on the back foot this morning.
Daily Ranges 07/12/2016
Majors
EURUSD
Resistance 1.0760 – 1.0790
Support 1.0674 – 1.0655
GBPUSD
Resistance 1.2740 – 1.2762
Support 1.2660 – 1.2624
AUDUSD
Resistance 0.7460 – 0.7470
Support 0.7424 – 0.7412
NZDUSD
Resistance 0.7147 – 0.7155
Support 0.7100 – 0.7090
USDCAD
Resistance 1.3310 – 1.3335
Support 1.3251 – 1.3235
USDJPY
Resistance 114.39 – 114.50
Support 113.66 – 113.30
USDCHF
Resistance 1.0114 – 1.0129
Support 1.0070 – 1.0060
Rand
USDZAR
Resistance 13.7275 – 13.8525
Support 13.6050 – 13.5330
EURZAR
Resistance 14.7738 – 14.9070
Support 14.5740 – 14.5125
GBPZAR
Resistance 17.5130 – 17.5566
Support 17.3065 – 17.2074
Minors
AUDCAD
Resistance 0.9908 – 0.9921
Support 0.9854 – 0.9830
AUDJPY
Resistance 85.16 – 85.33
Support 84.60 – 84.48
EURCHF
Resistance 1.0842 – 1.0850
Support 1.0816 – 1.0800
EURGBP
Resistance 0.8478 – 0.8500
Support 0.8380 – 0.8353
EURJPY
Resistance 122.79 – 122.90
Support 121.79 – 121.36
GBPJPY
Resistance 145.60 – 146.02
Support 144.14 – 143.67
GBPCAD
Resistance 1.6940 – 1.6970
Support 1.6819 – 1.6800
GBPCHF
Resistance 1.2870 – 1.2880
Support 1.2763 – 1.2730
CADCHF
Resistance 0.7611 – 0.7618
Support 0.7579 – 0.7550
Indices
DE30
Resistance 10830 – 10870
Support 10626 – 10580
UK100
Resistance 6810 – 6820
Support 6720 – 6690
US500
Resistance 2210 – 2220
Support 2190 – 2180
US30
Resistance 19200 – 19300
Support 19149 – 19100
SA40
Resistance 43461 – 43754
Support 42223 – 42000
Commodities
BRENT
Resistance 54.89 – 55.30
Support 53.28 – 52.84
XAUUSD
Resistance 1175.00 – 1177.20
Support 1165.74 – 1163.00
XAGUSD
Resistance 16.79 – 16.85
Support 16.54 – 16.48
Important Economic Data out today
- 11:30 GBP Manufacturing Production
- 15:30 CAD BOC Rate Statement
- 15:30 CAD Overnight Rate
- 17:30 USD Crude Oil Inventories
- 22:00 NZD RBNZ Governor Wheeler Speaks
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