Forex Major Pairs Morning Briefing
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 this month on not. Key support near 95 on the US Dollar (.DXY) Index could lead to USD strength again, the support is holding.PE
Notes: The USD strengthened a bit Vs the Euro and Sterling from Tuesday’s session.It might stay stable to weak Vs Japanese Yen.
EUR (Euro) at 1.1645 bounced from 1.155 and has moved up further on both Germany and UK bending on BREXIT, which makes a deal possible. If it breaks above 1.165, the next resistance is at 1.1700. Expect the 1.165-1.170 resistance to hold and push the single currency down to 1.1550 and lower. On the other hand, a if we see a break above 1.1700, that establishes the low at 1.13 low, or a medium-term bottom, and open up the path to 1.18-1 9.
The US Dollar (.DXY) Index at 94.99 is testing support at 95, and now .DXY could rise from here or go lower and rise from support at 94.5.
USD/JPY (Dollar Yen) at 111.32 is seeing resistance at 111.50. While the pair trades above 111, it could run to 112.5 in the next 2 weeks. But, a clear break below 111 could lead to a test of support at 110.50-70.
EUR/JPY (Euro Yen) at 129.64: The pair moved to 130, see a dip from 130. But, if EUR rises to 1.17 and USD/JPY rises to 111.50-112.00, then a test at 130.5-131.0 can happen. A weak close below 129.44 would signal more Bearishness.
Sterling (GBP) at 1.2921, seeing Key resistance 1.305-1.310 and expect it to hold near term. Bullishness to 1. 305 now looks good given BREXIT’s promise.