Forex Morning Briefing

Forex Morning Briefing

Forex Morning Briefing


Commentary: USD trading above Key resistance. PE

The US Dollar (.DXY) Index at 91.17 breached 90.5-91.0, the Key resistance zone. This strengthening of USD was aided by the move in US yields on the positivity around US GDP.

Note: The ECB meeting later Thursday could be important. Any increase in Hawkishness from the ECB could push USD down. We wait, we watch.

EUR (Euro) 1.2172 is testing the lower, and turning Bearish medium term. Key supports on 3 day and weekly candles has been broken.

Note: The ECB meeting Thursday could be the decider of whether the single currency will bounce back from 1.215 or not. Now it looks unlikely that EUR will gain any significant strength in here.

USD/JPY at 109.37 has risen past the 21-Wk MA at 108.95, and could target 110.

EUR/JPY at 133.14 is stay near 133, in the near term, the pair could stay below 134 if the USD/JPY dips from 110.5 and if EUR moves below 1.215, in May see the pair dipping to 131 or lower.

Sterling (GBP) at 1.3941 has pausing in its move towards Key long term support at 1.385 on the weekly lines, and expect a test to this mark soon. If this support breaks, GBP could turn Very Bearish medium term. My preference is for it to hold, then see a rally to long term resistance at 1.46 soon.

Have a terrific weekend.

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