Forex Morning Briefing
Commentary: Nothing new. PE
The US Dollar (.DXY) Index at 89.596 there is Key long term support level on the weekly lines at 89.0-89.5. The ECB and Bank of Japan meeting this week may push .DXY to 88. If the ECB makes a slight step forward in the direction of future tightening of its monetary policy, we might see USD weaken and .DXY come down to 88.
EUR (Euro) at 1.2403 marked a high at 1.2445. We may see some movement in the single currency in the few hours before the ECB meeting. EUR stands at a Key juncture now, as Mr. Draghi might have to be as emphatic if he wants to talk the Euro down. In that case the Euro dips to 1.23 and 1.22. Odds are 40-45%.
USD/JPY at 106.09 bounced from 105.45-105.50, the lowest mark seen by the pair in more than a year. The markets are waiting for both the ECB and BOJ meetings. A move to 105 may imply medium term Bearishness and lead to a test of support at 104.0-104.5.
EUR/JPY at 131.570 tested resistance near 132 on daily and 3 day candles Tuesday and might see a slow move to 129-130 now.
Sterling (GBP) at 1.3904 to 1.395, the 1st resistance on the daily candles. It is likely to dip after testing at 1.395.
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