Forex Morning Briefing
$DXY, $EUR, $JPY, $GBP, $AUD
Commentary: USD continues to struggle. PE
US Dollar (.DXY) Index at 89.283 on course to test support at 88.5-88.8 this week. The Northside for .DXy near term looks like 89.5 for now.
EUR (Euro) at 1.2401 may find 1st support at 1.24 in here. The ECB kept its rates constant in last Friday’s meeting in face of a robust EUR, but, markets expected an even more Dovish stance, which was not seen leading to continued strength in the single currency. EUR may test resistance at 1.25 if it stays above 1.24 this week
USD/JPY at 108.91 staying below 109, impacted by the Bank of Japan chief’s comment that inflation is finally nearing targets, thereby increasing the likelihood for raising of interest rates in 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 the EUR stays at 1.24ish. In case there is some weakening in EUR to 1.235, EUR/JPY may test support at 134 on the daily candles before moving North.
Sterling (EUR) at 1.4117 is trading below resistance at 1.42 on the 3 day candles. In case it breaks this resistance again, next resistance is 1.44 on the weekly candles, which should hold this week.