A good day for the FX traders following Dean’s analysis yesterday and the dollar did wrestle back some of the initiative against most pairs and let’s see what is in store for today’s trading. Retail Sales is the only real event risk today out at 14:30.
Dean's Daily FX Update – 12 August 2016
In the EURUSD, the Euro failed to punch above the resistance at 1.1190 and we now see the EMAs looking as though they are about to cross, MACD is crossing the waterline and the stochastics have turned.
In the Aussie, this has turned and the divergence we spoke about yesterday is playing out nicely in this forex pair. Could see a really nice run down if it can break through the 0.7626. The Kiwi is similar to the AUDUSD and we could see a continuation of this move downwards as the dollar starts to recover some of its recent losses.
The Loonie (USDCAD) was the only black sheep amongst the pairs we looked at yesterday. It continued to strengthen despite looking as though it was going to stall at the 50% Fib level. This was purely on the back of oil prices and we have continuously mentioned the correlation between these two markets.
The ZAR bounced off the recent lows and it is only the price action that is keeping Dean up at night. All other indicators suggest that the dollar should continue to rally.
The theme should be a continuation of the dollar rally but keep an eye on the Retail Sales this afternoon.
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