Forex Morning Briefing

Forex Morning Briefing


Commentary: Nothing new. PE

The US Dollar (.DXY) Index at 93.887 rose to 94.02 the resistance on 3 day candles & daily line on Friday as news of the US corporate tax bill moving closer to ratification started to come in. This is an major resistance which should hold in the near term. A clear break there could drive DAX to resistance on daily candles around 94.4-94.5, followed by a dip.

EUR (Euro) at 1.176 came down after the ECB meet and the US tax cut developments and is currently testing support 1.175 on 3 day and weekly candles. This is seen as a strong support. A clear break there could push the single currency to 1.17, from where a bounce may come.

USD/JPY at 112.64 moved up on back of perceived USD strength. If .DXY retains its strength around 94 for another week, we could see USD/JPY move in the range of 112.5-113.5. In case of a test of 94.5 by .DXY, the a test at 114.0.

Sterling (GBP) at 1.3333 fell Friday and is trading at 1.33, which could mean a test of support near 1.326-1.328 on the daily candles, then a rise to resistance near 1.341-1.342. May be seeing the formation of an ascending triangle on the daily candles for Cable, which could imply few more rounds of ranging oscillation between 1.325-1.35, followed by a break to the Northside in January.

Have a terrific week,

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