A pretty decent week given the relatively small ranges the forex markets have traded in. We have manged to get through some Fed jaw-boning and come out the other side with still very little clarity as to where rates are going. Dean has had success on the USDCAD and the AUDUSD. He has left a little on the table but a win is a win.
Dean's Daily FX Update – 30 September 2016
An initial move in the EURUSD this week followed our planning on Sunday. 1.1250 – 1.13 proved a step to far and we traded back to 1.1195. Back in a very tight range and we are going to need something to happen for us to get interested in this pair again.
In Cable (GBPUSD) we have seen almost no movement in the FX pair this week. Dean did fancy the short yesterday but did not want to put his capital at risk in a pair that is trading sideways. If the market got to 1.32 he would consider a short and a long around 1.2865.
A lovely trade in the AUDUSD. For those that are short as discussed yesterday, Dean would be putting in a trailing stop and hope we can break the 0.76 level. Clean air all the way down to around 0.7440.
In the Kiwi, we are in no man’s land. There is support at 0.7213 and there was a fleeting opportunity to get long around 0.7250 but Dean not involved.
Dean is hoping that euphoria of an oil deal subsides and we push back towards 1.3250 for another short opportunity. One to be a bit cautious with because the oil price is a couple of bucks higher and we are still seeing weakness in USDCAD. May be something more systemic that could cause it to pop through the resistance.
Hopefully Dean’s advice on the rand keep most of you away from establishing short positions in the USDZAR. The risk reward ratio was not favourable as we have seen continued weakness towards 14.
Have a great weekend!
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