Forex Morning Briefing
$DXY, $EUR, $GBP, $JPY, $AUD
Commentary: US GDP Friday may come in stronger than expected, may not. PE
US Dollar (.DXY) Index at 94.74, the FOMC meet this week could strengthen .DXY as the overtones in the policy statement could be Hawkish. If that happens, a rise to 95.5 is seen. The resistance at 95.5-96.0 is important, a clear break above that is iffy. If it occurs, it could make .DXY Bullish going into September.
EUR (Euro) at 1.1650 did not weaken much Friday since the ECB data could not surpass the expectations. The BoJ and FOMC meets this week may weaken the single currency if there is a Hawkish tone to both the central banks’ policy statements. There is a chance that support at 1.16 could be broken in here, and next support near 1.150-1.145 could be tested soon. Or, EUR sees a week ranged within 1.1725-1.16 before deciding its direction
USD/JPY at 111.12 is trading near support at 111. There is important resistance near 112.5. There is supports at 110.5 and 110.0. If the BoJ decides to bring in even slight tightening to its loose monetary policy, then it might lead to strength in JPY and then a break below 110.
EUR/JPY at 129.47, support near 129.4-129.2 are holding for the pair currently. May see this support break this week, as the EUR could weaken, as JPY could strengthen. A break below 129.4-129.2 there support at 127, and it could be tested soon.
Sterling (GBP) 1.3099 could be Bearish to 129. A move below 1.312-1.313 breaks the 89-Wks MA a sign of further Bearishness going forward.
Have a terrific week
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