Forex Morning Briefing
$DXY, $EUR, $JPY
Commentary: Asian and EU markets open. PE
The US Dollar (.DXY) Index at 92.3650 has risen to 92.5, and may see resistance here for a few sessions.
Note: The next few sessions could also depend upon the perception of the FOMC’s stance in its meeting later today. Although a rate hike is not expected Wednesday, expectation of further Hawkish intent from the Fed could help USD strengthen. Its next target medium term could be 94-95. The Northside could be capped till 94-95 after which USD could correct.
EUR (Euro) 1.2006) weakened further Tuesday, seeing a low of 1.1981 testing support near 1.198-1.200. The single currency’s medium term target corresponding to .DXY target at 94-95 or near 1.16.
USD/JPY at 109.71 moved up in the channel instead of dipping to 108.5, the current uptrend could be capped at 110.0-110.5, after which the pair could dip within 3 sessions
EUR/JPY at 131.74 is moving down to 131. My targets of 1.195 on the EUR and 109.0 on USD/JPY for this week suggests EUR/JPY could break below 131 to target 130. There is support near 131 on weekly candle, which could prevent a test of 130.
We wait, We watch.
Sterling (GBP) at 1.3614 against expectations, has broken below Key long term support at 1.385. This could prove to be a Key break, making GBP Very Bearish medium term. Next target is 1.35