Forex Morning Briefing, Major Pairs

Forex Morning Briefing, Major Pairs


Commentary: The FOMC hiked interest rates as expected and laid out plans to pare the $4.5-T balance sheet. USD weakened briefly but the Bullish reversal chances are still open. PE

The US Dollar (.DXY) Index at 96.94 marked a low at 96.32 before bouncing to 97.00, but the technical picture has not changed much as the Northside reversal chances remain open, requires a break above 97.20-30 to confirm.

EUR (Euro) at 1.1218 invalidated the small Triangle pattern and registered a fresh high at 1.1296, but the rejection at the higher levels imply inherent weakness which would be confirmed on a break below 1.1160.

USD/JPY at 109.55 was rejected exactly at the resistance of 110.35 then to 108.80 but the recovery suggests that the USD Bulls are still in play. The Southside looks limited to 108.00, a break above 110.35 may take it to 111.00 now, then to 113.00.

Sterling (GBP) at 1.2740 tested the Key resistance 1.2800 but the failure to sustain the higher levels keeps the trend weak, 1st  support comes at 1.2600.

AUD (Aussie) at 0.7602 rose above 0.7600 on the back of better than expected employment data at +42-K against expectations of +10-K in May. It is not clear if it will be able to test resistance at 0.7700-50 without a correction. So, prefer to wait for for clarity. Trend is up with immediate support at 0.7550-20.

Stay tuned…

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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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