Forex Major Pairs Morning Briefing
$DXY, $EUR, $GBP, $JPY, $AUD
Commentary: The Turkish Lira at 6.9891 dove 18 % Friday as US President Trump’s announcement of tariffs on metal exports from Turkey rattled the delicate situation in the Turkish economy. This crash has weakened most majors, except the JPY Vs USD. PE
US Dollar (.DXY) Index at 96.41: .DXY saw some dramatic strengthening Friday as the Turkish Lira’s crash might have led investors to safe haven assets like US bonds. The US Dollar Index is now looking Bullish to marks at 97-98, and the EUR’s test to 1.13 could correspond to the US Dollar Index’s test of 97. A clear break above for .DXY at 98, if it occurs, would be Very Bullish for USD in the medium term.
EUR (Euro) 1.1377: The Turkish Lira’s crash last Friday weakened the single currency to the 200-Wks MA at 1.135 faster than expected. EUR could weaken further to test to major trendline support on the weekly lines at 1.13 during this week. The EU GDP release Tuesday. and EU CPI release Friday could very well be Key factors in here.
USD/JPY (Dollar Yen) at 110.20): The pair has broken below support at 110.50 on the daily and weekly candles. Much watch out for the 21 Wks MA at 109.76 on weekly line, which may well provide support. If that support is broken, we could see the pair decline more going forward.
EUR/JPY (Euro Yen) at 125.38: The pair has seen a steep fall too, breaking below the important support 127 on weekly line Friday. EUR/JPY now Bearish to its May end low at 124.62, which it could test this week . There could be some support 124.0-123.5 in here, watch it closely.
Sterling (GBP) at 1.2751: The Great British Pound has broken support at 1.28 and is Bearish to support at 1.25 soon. A further Southside move to 1.270-1.265 looks on the cards for this week.
Have a terrific week