Forex Morning Briefing

Forex Morning Briefing


Commentary: USD continues to struggle PE

US Dollar  (.DXY) Index at 89.283 to test support on daily lines 88.5-88.8 this week. On the daily candle the Northside for .DXY near term looks capped at 89.5.

EUR (Euro) at 1.2401 seeking 1st  resistance at 1.24 now. The ECB kept its rates constant in last Friday’s meeting in face of a robust Euro, however, markets expected an even more Dovish stance thereby leading to continued strength in the single currency. EUR could again test at 1.25 on the weekly lines if it stays above 1.24.

USD/JPY at 108.91 continues to stay below 109, impacted by the Bank of Japan boss’ comment that inflation is nearing targets increasing the likelihood for raising of rates in near future. There is support near 108.5-108.75 on the weekly lines, which should hold for now.

EUR/JPY at 134.99 to target 134.5 if USD/JPY comes down to 108.5 and EUR stays around 1.24. In case there is some weakening in EUR to 1.235, EUR/JPY may test support at 134 on the daily candle, then move up.

Sterling (GBP) at 1.4117 is trading below resistance at 1.42 on the 3-Day candle. A clear break there, then 1.44 is next this week.

Have a terrific week.

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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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