Forex Morning Briefing

Forex Morning Briefing


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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