Forex Morning Briefing
$DXY, $EUR, $JPY, $GBP, $AUD
Commentary: The new US Fed Chairman Jerome Powell Tuesday re affirmed the Fed’s plans of gradual rate hikes in Y 2018 due to strong confidence in rising US growth and inflation, thus he injected temporary strength for USD.PE
The US Dollar (.DXY) Index at 90.412 is close to resistance at 90.5, Shayne and I expect it to hold near term. If it breaks 90.5, there are 2 strong resistances at 91, and at 91.5 that will reject .DXY and send it back due South.
EUR (Euro) at 1.2217 is holding above support at 1.22. But, earlier Bullishness is dented. It has long-term support at 1.2150, which can trigger a sharp rise, perhaps even up to 1.26 before the ECB meeting on 8 March.
USD/JPY at 107.24 rose to 107.70 over night, well above our intra-day Bullish target of 107.25. But, it has remained below Key long-term resistance at 107.90-108.00, suggesting long-term Bearishness.
EUR/JPY at 131.02 is testing support at 131 and if the single currency strengthens towards 1.25-1.26 in the coming week while the USD/JPY stays in the 106-108 area, EUR/JPY could rise to 132.
Sterling (EUR) at 1.3895 dipped below support at 1.39, and could test support at 1.38 on daily and 3-Day candles before a bounce.