Forex Major Pairs Morning Briefing
$DXY, $EUR, $GBP, $JPY, $AUD
Commentary: Tuesday’s rebound on Wall Street coincided with a rebound in the Turkish Lira, which had plunged nearly 25% Vs in the prior 2 sessions. The Lira added about 8% Vs USD Tuesday, helping to ease concerns over the financial health of lenders with heavy exposure to Turkey. PE
Note: After 2 days of serious weakening, the Turkish Lira at 6.875 is consolidating for a bit below 7. Charts suggest that some more upside is possible, thereby implying that RMB Yuan, Euro, Sterling, Rupee and some other emerging market currencies could weaken more Vs. USD.
The major pairs at the close in the US Tuesday 14 August 2018
- EUR/USD: -0.53% to 1.1345
- GBP/USD: -0.32% to 1.2721
- USD/CHF: +0.11% at 0.9941
- USD/JPY: +0.46% at 111.23
- USD/CNY: -0.11% to 6.881
- USD/INR: -0.05% to 70.05
- USD/RUB: -1.60% to 66.53
- USD/TRY: -7.07% to 6.379
The Dollar (.DXY) Index at 96.295: .DXY is consolidating after testing resistance at 96.5. While .DXY trades above 95.7-95.5, it could move to 97 yet this, which could correspond to EUR testing to 1.13.
EUR (Euro) at 1.1410: EUR sees support at 1.1360 holding in here. The single currency must rise 1.1450 to see some Bullishness. While it trades below 1.145, a test to 1.13 can happen this week.
USD/JPY (Dollar Yen) at 110.78: The pair is trading below important resistance at 111. While it trades below 111, a dip to 109.5 is possible in here. A rise above 111 opens a test to 113 medium term.
EUR/JPY (Euro Yen) at 126.40: The pair saw a low at 125 Tuesday, and has traded lower. Further Bearishness can pause on a move past 127. While the pair trades below 127, a fall below 124.62, then targets support at 124.0-123.5 medium term.
Sterling (GBP) at 1.2768: The Great British Pound broke support at 1.28, and can fall deeper to 1.270-1.265 now. In the next few weeks, Bearishness could extend to support at 1.25-1.22.