Dean’s preferred FX trades were the AUDUSD and the USDCAD from yesterday and a pretty reasonable day it was. Dean favoured the Aussie because of the OPEC meeting but those that took the trade on the Loonie would have been handsomely rewarded.
Dean's Daily FX Update – 29 September 2016
In the EURUSD, the market traded off and then we got a bounce off 1.1180. Dean’s lower support was around 1.1120 so he has not been involved here. We are in the middle of the range so staying out for now.
The GBPUSD got a bounce off 1.2970 but this is not a level he feels he can trust. We are up 60 pips in a week which shows a great deal uncertainty and conviction about taking this forex pair higher. He would prefer to trade this from the short side.
The AUDUSD we pushed right through our area of resistance. The price action earlier this morning gave us a clue that this move higher was running out of steam. Spinning top candle formation, cluster of candles around the high and a moving average cross-over. Dean is currently short and will be watching the action.
In the Kiwi, Dean is watching how the market reacts if it can push a bit lower towards 0.7217. Below this level there is nothing until we get to about 0.6950. Could be a lovely short trade but keep an eye on the 0.72 level.
1.3250 is a level that USDCAD has been comfortable around for the last little while. We said yesterday that the OPEC meeting could influence this forex pair because of its link to the oil price. We got word yesterday afternoon that there was agreement to cut production and the CAD responded as expected. 150 pips was on the table.
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