Dean has really shown some commitment to all the Forex traders out there by doing his market commentary from a hospital bed … a dose of pneumonia has put him on his back for a day or two. Thanks Dean!
Dean's Daily FX Update – 24 August 2016
Dean looks at the Pravin Gordhan saga and also the likelihood of reduced liquidity going into the weekend as Yellen prepares to deliver her speech from Jackson Hole. An annual event which may give some clarity of where the US Federal Reserve sees monetary policy over the next few months.
The EURUSD is making a very slow move towards the 50% Fibonacci level and Dean would have some interest at looking at long positions should it get there.
In Cable (GBPUSD), Dean is looking for a small pull back to the 1.31 level where there is some support for this pair. At these levels, he would be looking at longs as there seems to be more acceptance of the Brexit vote and that it may take some time before anything really happens.
The AUDUSD broke our support line at 0.7625 the other day and has failed to break back above that for now. Dean is looking at trading this with the new trend in place and probably looking at shorts if gets back up to the 50% Fib level.
Dean is looking for another possible short in the Loonie (USDCAD) and is sticking with the bear flag story from yesterday.
No trade in the Yen for now as it hovers around the 100 level. The Bollinger Bands have really tightened up suggesting reduced liquidity and less appetite to be caught out by a BOJ move.
The Rand got smashed yesterday afternoon after a post in the Daily Maverick that Pravin was likely to be arrested at some point over his involvement in setting up a unit within SARS. Dean believes this is overdone and will be treating this move as a gap, hoping it will close and trade back down to the 13.51 level.
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