Forex Morning Briefing
$DXY, $EUR, $JPY, $GBP
The US Dollar (.DXY) Index at 93.109 dropped Friday to a low of 92.6 during intra-day, and closed at 92.89. However, the index is again trading at levels seen prior to Friday, boosted by the late night corporate tax cut passed by the US Senate.
Note: It would be interesting to see if this provides strength to USD, in which case, .DXY could test at 93.30-93.40 on the daily soon. However, a return to weakness could see the index test immediate support near 92.80 on the daily.
EUR (Euro) at 1.1871 saw strength on Friday with a day high of 1.1940 and a close just below 1.19 at 1.1899. However, the news of The Trump Tax Cuts seems to have brought in bearishness and a drop to support near 1.18-1.1775 on the weekly might happen soon.
Note: It is yet to be seen if the impact of the tax cuts will have a lasting effect, in the absence of which, a move towards resistance near 1.19-1.195 on weekly and a corresponding breach of the same can be expected.
USD/JPY at 112.74 has been moving up for the last few days and set to test resistance at 113.50 on the daily in this week. A move past that could imply a further test of 114 on the weekly by the end of this year.
Sterling (GBP) at 1.3468 breached resistance at 1.35 Friday to reach a high of 1.355 intra-day trading, but closed below 1.35 at 1.3472. A breach of that resistance could push it to test at 1.36 on the weekly.
Have a terrific week.