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  • Writer's pictureMike Paterson

Range trading still

Thursday 16 September 2021

Variable risk sentiment prevailing and that's creating tight ranges on cross and core pairs in these ever fickle financial and forex markets.

Today sees a speech from Lagarde at 12.00 GMT and latest weekly US jobs data, neither of which are likely to wake up the algos so let's hope for something else to do that job. Keep an eye also on fallout from the US/UK/Australia nuclear submarine deal. Also reports this morning of a UK General Election within next 20 months, well ahead of the 2024 deadline.

As we continue to range remember that patience and discipline in trading are key as ever, and not being greedy.

GBPUSD: Good two-way business to be had between 1.3800-60 in the last 24 hours whatever you bias. Rinse n repeat until broken. I remain a rally seller while keeping an eye on EURGBP and GBPJPY as always. EURGBP: Testing 0.8520-25 again where we also have some options interest today after once more failing to break back up through 0.8550. The latest retreat helping to underpin GBPUSD again but all relative and fickle in these tight markets. GBPJPY: Support now at the old 150.80 line after yesterday's retreat from 151.60 and we've failed up there again since. Sellers still poised when risk sentiment fades as I've been warning for a while now and suits my core pair positions.

I remain a GBP rally seller across the pairs but being patient as ever. These are risk sentiment markets and ever fickle so good/tight position management essential.

EURUSD: 1.1800 support now broken again after failing into 1.1830 and some pips banked in the retreat again from rally re-sells. USDJPY: 109.30 support broke yesterday only to find more into 109.10 ahead of large support at 109.00 with 109.50 capping rallies since. EURJPY: Rallies capped now at 129.40 amid the generally soggy EUR tones still and fragile risk but finding support now at 128.80 although sellers remain poised.USDCHF: 0.9160 providing support and now 0.9190 with the SNB ever vigiliant as EURUSD retreats and EURCHF ranges amid the variable risk but sellers still poised. EURCHF: Testing 1.0860 again as I type in the latest retreat with SNB shadow ever present. Dip buying still the preferred trade but not greedy in the rallies.

AUDUSD: Looking at 0.7300-10 again after failing into 0.7350 in Asia (options today at 0.7360 helping to cap possibly). NZ not happy about the nuclear sub deal and neither will China so watch for further fallout.

USDCAD: Good support coming in at 1.2620 now amid the variable risk/oil price tones but capped at 1.2660 so far

Let's continue to be careful out there in all things. Staying safe must be our main priority still.

Interbank rates: 08.07 BST

GBPUSD 1.3818

EURUSD 1.1790

EURGBP 0.8532

GBPEUR 1.1718

GBPJPY 151.12

GBPCAD 1.7460

GBPZAR 20.0276

GBPHKD 10.7643

USDJPY 109.38

EURJPY 128.94

EURCHF 1.0866

EURHKD 9.1861

AUDUSD 0.7317

USDCAD 1.2635

USDCHF 0.9213

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