$DXY, $EUR, $JPY, $GBP, $AUD
Commentary: The Dovish sentiment expressed in the ECB Draghi’s statement about the European bond buying program has the single currency weak. PE
EUR (Euro) at 1.1128 weak but the proximity of the major support at 1.1100-1.1075, and the lack of Southside momentum point towards the possibility of a turnaround this week.
The strength of the US Dollar (.DXY) Index at 97.67 looks suspect even above the interim resistance of 97.55 and near term upside may be limited to 98.00 highest.
USD/JPY at 110.87 keeps oscillating in the range of 110-112 and may continue that for a few sessions more. The Bullish options remain open till 110 holds but the prolonged weakness in EUR/JPY at 123.38, which may 122.80-60 or even 122.00 before bouncing, raises questions about the Northside chances. If a break below 110 is seen, then a resumption of the larger downtrend may be confirmed. Waiting and Watch.
Sterling (GBP) at 1.2818, and if 1.2750-00 holds for now and Short covering may push Cable to 1.2900. The volatility is expected to remain high till the 8 June election with 1.2750-00 being the make or break support level for the near to medium term trend.
AUD (Aussie) at 0.7424 has been trading sideways in the range of 0.74-0.75 as expected and may continue that for the rest of this week.
Have a terrific week.
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