Forex Morning Briefing, Major Pairs
$DXY, $EUR, $JPY, $GBP, $AUD
Commentary: The financial markets wait for US President Trump to introduce a new tax plan Wednesday, cutting the corporate tax to 15% from the existing 35%. Also the BOJ and ECB meet Thursday can play a Key role. PE
USD: My expectations of a major reversal in The Dollar (.DXY) Index (98.78) will be either confirmed or negated within 12.5 hours as the combination of The Trump Tax policy announcement today and the ECB meet Thursday will set the near term path. Chances of a whiplash around the major support of 98.50 before a turnaround cannot be ruled out. The 1st signal of a Bullish rise comes on a clear break above 99.35, this Bullish scenario is discarded on a clear move below 98.50.
EUR at 1.0938 is testing the higher at 1.0930-50 contrary to expectations, but it remains to be seen if it is able to rise past and stay above 1.0950. As long as 1.0950 holds, the possibility of a Southward correction to 1.07 is open but on a firm break above 1.0950, the Bearish option must be reconsidered. The situation should be clear by Wednesday’s close.
Sterling at 1.2840 continues sideways consolidation within 1.2750-1.2900 with indifference to global events, it may remain quiet for the rest of the week.
USD/JPY at 111.24 has rallied towards target at 111.50-112.00 as expected. Near 112.00 may pause for 2 days, before deciding the next direction, 1st support is at 110.00.
Aussie (AUD) at 0.7515 is oscillating in the range of 0.7450-0.7600 as expected, but if interim support at 0.7500 holds Wednesday, then a contraction can be seen in the action which may cause a sharp trending move next week, the direction is unclear. We wait, We watch.
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