Forex Morning Briefing
$DXY, $EUR, $JPY, $GBP
Commentary: Most currencies may go quiet over the next couple of days, headed into the Christmas Holidays. While the EUR and GBP look potentially weak, the JPY and AUD look potentially strong. PE
The US Dollar (.DXY) Index at 93.43 dipped Tuesday after testing resistance near 94 on the 3 day candles and is currently trading below support near 93.5 on the daily candles. A clear break below 92.5 could set off a downtrend for .DXY in January.
EUR (Euro) at 1.1843 bounced Tuesday after testing support near 1.175 and is now trading around 1.184-1.185. The single currency is likely to move in a narrow range over the next few days. If .DXY tests support near 93 or 92.5, maybe we see EUR move up and test resistance at 1.19.
USD/JPY at 112.94 maintaining strength, which may be due to US-Japan 10 yr yield spread breaking short term resistance and rising up to 2.4%. A break below 112 medium term is likely in case .DXY breaks below 92.5.
Sterling (GBP) at 1.3395 might see range oscillation between 1.325-1.345 in the next few sessions, and is currently moving up towards 1st resistance near 1.343-1.345.