Yesterday started off so promisingly and it looked like some of the Forex trades were going to trigger. Only the USDCAD worked out well. We have some event risk with the ECB rate decision around lunchtime and the press conference afterwards which will be watched closely.
Dean's Daily FX Update – 08 September 2016
The EURUSD came off the resistance line at 1.1260 and it looked as though it was going to move nicely lower but the market found some support around 1.1230 and we are now back at where we started yesterday. This has been quite a big level going back to August and we will be watching the price action and keeping an eye on Draghi at the ECB press conference early this afternoon.
Similar action in the GBPUSD and we have found some minor support at 1.3350. All indications are that this will continue to move lower with the EMA’s crossing, longer term MA’s starting to turn and we have moved just below the waterline on the MACD.
The Aussie (AUDUSD) has been on a bit of a rampage up this morning on some good economic news. Nearing our previous resistance at 0.7750 and after a false start yesterday we are going to have to be patient. It shows the importance of being aware of economic news that may be coming out while you are asleep and how it can influence the forex market!
The NZDUSD shows two different things depending on the timeframe you employ. On the daily chart is appears to be steaming ahead, while on the 4hr chart, it looks to be running out of momentum. Some stochastic divergence forming but Dean would prefer to see MACD divergence. One to watch!
The USDCAD had a nice move yesterday and those that took the trade would have made 100 pips. It was on the back of a Bank of Canada rate decision but we are seeing some pullback this morning in this FX pair.
Could have another look at the 100 level in the USDJPY and Dean will be monitoring that after it stalled around 104. 100 is a huge level for the Yen!
The USDZAR has found some support at 14.00. A nice round number but technically not a big level and Dean is hoping for it to strengthen a bit before looking for longs.
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