For the most part, the trading day turned out largely as expected. We saw a recovery in the USD against most of the commodity currencies we covered yesterday. Open up the video and see where Dean sees opportunities today and how he plans to trade before the weekend.
Dean's Daily FX Update – 19 August 2016
In the EURUSD, we are starting to test the key resistance level we put in place earlier. The EMAs are starting to turn, the stochastics are heavily overbought and the MACD is showing signs of turning towards the waterline. One of Dean’s favourite clues is divergence in a forex pair and we are starting to see this unfold.
In Cable (GBPUSD), we are seeing some very nice price action which would suggest the recent rally is coming to an end and may have been overdone. There is a pin bar at the top and a bearish engulfing candle to follow which tend to be bearish signals. The other indicators are similar to those found in the Euro and so Dean is looking for reasons to sell this pair.
The AUDUSD performed exactly as Dean predicted and it is playing out in a nice little channel between support and resistance levels he had put in place. The FX pair may start to drift back towards the upper resistance line at 0.7724.
The resistance line in the NZDUSD is in place but not quite as clear cut as the Aussie dollar.
In the Rand we had in place a support level at 13.24 and also a resistance level at 13.51. Dean is looking to trade this channel in the USDZAR.
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