Forex Major Pairs Morning Briefing
$DXY, $EUR, $GBP, $JPY, $AUD
Commentary: USD trading higher and EUR is moving lower, both towards there respective support and resistance in here. PE
US Dollar (.DXY) Index at 95.586: .DXY is moving closer to its prior highs 95.6-95.7. On weekly line a clear break of 95 has .DXY looking Bullish near term.
Note: If US CPI comes out strong Friday, we could see a break above those highs to 96. And, this move could extend to 97-98 in the weeks ahead.
EUR (Euro) at 1.1532): EUR’s dip to 1.155 seen for next week happened Thursday with the single currency tapping lows near 1.152. Note: The ECB’s monthly bulletin highlighting global growth risks due to trade protectionism might have been the trigger for the move South. A close below 1.1508 Friday would be Bearish EUR, and could push it ot support 1.145 next week, then to 1.136, 1.1510-1.1508 is an important support for Euro.
Note: If US CPI Friday does not beat expectations, the support could hold, triggering a rise to 1.165 next week.
USD/JPY (Dollar Yen) at 110.92: The pair has support at 110.60-110.50, it could rise in the next week to 112. A clear break below 110.50 may be Bearish reducing the chances of a rise to the resistance at 113-115 in the weeks ahead.
EUR/JPY (Euro Yen) at 127.90): The pair looks Bearish to support at 127.5-127.0 next week. EUR/JPY is to 1.145 and USD/JPY staying near 111 is consistent with the pair testing to 127.
Note: Support on weekly line at 127 is major long term support, a clear break there could be Bearish.
Sterling (GBP) at 1.2832): Notably he beak below 1.285 negates the move North to 1.30. But, an move to 1.290-1.295 is possible while GBP trades above 1.28. A break below 1.28 now, could take push it to 1.26 fast.
Have a terrific weekend.