Forex Morning Briefing

Forex Morning Briefing

$DXY, $EUR, $JPY, $GBP, $AUD

Commentary: USD is still struggling. PE

US Dollar (.DXY) Index at 89.069 fell further after US Treasury Secretary Mnuchin  said from Davos that the US likes a weak USD since it helps in trade. The Buck is now trading weaker against all major currencies. I see some support near 88.5 on the daily lines, and should hold near term.

Note: The ECB meeting Thursday will be important in determining how .DXY acts near term.

EUR (Euro) at 1.2423 has broken resistance at 1.2320-1.2330 on the daily candles. The Key resistance is 1.25 on the weekly line may not be tested near term, as a dip can be expected.

Note: The ECB meeting could be an important factor which brings about some consolidation in the single currency.

USD/JPY at 109.13 is trading below support at 109.5. The next 3 sessions will give us some clarity on whether it goes back above this support and respects it, or, drops to test at 108.75 on the weekly lines.

EUR/JPY at 135.57 continues ranged within 135.3-135.7. Might have to wait for 2-3 sessions to get directional clarity.

Sterling (GBP) at 1.4273 has strengthened Vs USD, and has broken resistance on weekly candle at 1.41-1.42. Now have to wait and watch near term strengthening of the USD can pull GBP back below the resistance at 1.42.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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