Forex Morning Briefing, Major Pairs

Forex Morning Briefing, Major Pairs


Commentary: We await US NFPs in a few hours, USD remains weak off of soft US ISM numbers. PE

US Dollar (.DXY) Index: A worse than expected reading of US ISM manufacturing index keeps .DXY at 92.78 weak and on track to my Southside target at 92.00.

EUR (Euro) at 1.1875 seeing a narrow ranged day as traders wait for the US NFPs data in a few hours. Weak NFPs data will be beneficial for the single currency to test 1.20 and push USD to 92.00.

USD/JPY at 110.14 saw sharp rejection exactly at 111.00-10 my resistance mark to test sub-110.00. Near term, a trending move can be expected next week, but only a clear break from the range at 109.30-111.10. Otherwise, the pair may trade in this range for a few more days before we see a breakout.

BOE kept the rates unchanged but a cut in the GDP and wage growth projection triggered a sharp decline in Sterling (GBP) at 1.3139 pushing it to near term support at 1.3100. A recovery can be expected if it manages to stay above 1.3100-1.3050. There is the probability of a breakdown below 1.3050 signaling a Top at 1.3260. We wait, We watch.

AUD (Aussie) at 0.7970 is in consolidation mode, and ranged within 0.7875-0.8050, which may continue for a few more sessions. The larger trend is North and the higher targets of 0.8100-70 are unchanged.

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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