Forex Major Pairs Morning Briefing
$DXY, $EUR, $GBP, $JPY, $AUD
Commentary: Again, we are at important marks in most currencies. There is the chance that the current USD’s strength could see a correction/reversal early next month. This become bigger if certain Support and Resistances hold. PE
Notes: Some positive sentiment is swirling around the BREXIT talks helped GBP rally Wednesday. EUR held important support, suggesting that it could move higher near term, and
The US Dollar (.DXY) Index finished -0.1% at 94.63 after surrendering a modest overnight gainer Wednesday in the US, marking its 4th loss running after slipping into negative territory due to a spike in Sterling. Sterling spiked to a 3-week high after EU’s BREXIT negotiator Michel Barnier said the EU is prepared to offer the UK an ‘unprecedented’ partnership after BREXIT. Germany’s Foreign Ministry responded saying there are no plans to grant special rights to the UK, but GBP held its session high.
On the emerging markets front, the Argentine Peso has hit a fresh record low Vs USD, following reports that Argentina asked the IMF to accelerate disbursements from the $50-M line of credit that was secured in June.
The US Dollar (.DXY) Index at 94.57 broke support 94.7 on the daily candles, next is 94.3 and then 94. Next few sessions could see a further South-move to these marks.
EUR (Euro) at 1.1701 could not break below support 1.165 on the daily Wednesday. Chances of an up-move to 1.175 has increased. A move above 1.175 then sees important resistance at 1.178, and then at 1.1825-1.185.
USD/JPY (Dollar Yen) at 111.64: The pair may be starting to turn Bullish to 113, as it saw a high near 111.8 Wednesday and looks set to break above 112.2 yet this week or early next week.
USD/JPY (Euro Yen) at 130.63): The Pair sees a break above 131 have again emerged for EUR/JPY, as USD/JPY has broken above 111.5 and EUR/USD could not break below 1.165. Seeing 132 next week.
Sterling (GBP) at 1.3031: The Great British Pound broke above 1st resistance at 1.287 on daily to mark a high at 1.3038, and 1.303-1.305 is major resistance, which if broken, would be Bullish for GBP. I see this resistance holding in here.