Forex Morning Briefing

Forex Morning Briefing

Forex Morning Briefing


Commentary: USD broke Key support at 89.0. PE

US Dollar (.DXY) Index at 88.757 broke below Key support at 89 and testing support at 88.6-88.7. There are good chances for this support zone of 88.6-88.9 to hold. We will wait for a clear directional signal. Now it looks weak.

EUR (Euro) at 1.2495 moved up marking a high of 1.2516 Friday and is trading just below 1.25. Resistance here and 1.26. This is a major resistance, so will have to wait and watch towards 1.23 some support on the weekly lines.

USD/JPY at 109.64 is strengthening as the Bank of Japan reacted aggressively to the recent rise in Japanese yields by increasing its bond purchases. With the Japanese govt and Central Bank not seeming to favor JPY strength, it will be interesting to see if an increasing yield spread between US and Japanese bonds will strengthen USD/JPY in here. USD/JPY is at resistance 109.7, and if it holds, there may be a dip to 109 Friday.

EUR/JPY at 137.06 moved up past 136. But, there is Key resistance coming up near 138 on the pair which can hold.

Sterling (GBP) at 1.4270 moved up past resistance 1.42 on the 3-Day candles, next resistance is at 1.43-1.44.

Have a terrific weekend.

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