Forex Morning Briefing

Forex Morning Briefing


Commentary: USD weakness persists seems to have halted on The Trump Tax Cuts. PE

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.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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