Forex Morning Briefing
$DXY, $EUR, $GBP, $JPY
Commentary: The political turmoil in Italy seems to have spurred the demand for USDs. PE
US Dollar (.DXY) Index 94.95 tapped 95 Tuesday, now USD should dip. If it breaks 95.63, then we will look for higher marks. Wednsday a dip to 94.6 could happen before another rise to 95.
EUR (Euro) at 1.1525 is impacted by the political crisis in Italy and saw a low near 1.151 Tuesday. It is now trading near our target at 1.155-1.145. On the 3-Day line, 1.135-1.140 is seen as support. Meaning, the Southside might extend below 1.145. We wait, we watch.
USD/JPY at 108.58 tested the 21 Wks MA at 108 Tuesday, and this could be Key, a clear break there could lead to Bearishness for the pair. With investors nervous regarding the Italy/EU crisis, JPY might strengthen, as it is considered as a safe asset. A clear break of 108 may cause a quick move South to 106-105.
EUR/JPY at 125.13 has fallen towards 125, an important support mark, if broken, the next target is 120.
Sterling (GBP) 1.3248 marked a low at 1.3205 Tuesday. It could move lower over the next 2 weeks to 1.30. A clear break of 1.30 imply continuing Bearishness medium term.