Forex Morning Briefing
$DXY, $EUR, $JPY, $GBP, $AUD
Commentary: Nothing new. PE
The US Dollar (.DXY) Index at 89.517 broke support on the daily lines, and saw a low at 89.43 Tuesday. It is currently trading near 89.5 and the next major long term support is at 89.0-89.5. There is the possibility for support at 88 to be tested if the ECB meeting on 8 March does not weaken the EUR. A test of 88 would be extremely Bearish for the Buck since long term support on weekly lines would have been breached.
EUR (Euro) at 1.2418, there has been a sharp rise in the single currency as per my expectation. The ECB meet is due Thursday, and the markets would like to see what Mr. Draghi says about Euro. Mr. Draghi will again have to be emphatic if he wants to talk Euro down. If he does, the Euro dips to 1.22.
USD/JPY at 105.74 tested at 106.5 Tuesday and is now dipping. It has seen a low of 105.46 Wednesday which is near to the low at 105.55 last seen on 16 February. This is the lowest that the pair has dipped to in more than a year. A move South to 105 could imply medium term Bearishness and could lead to a test of support at 104.0-104.5.
EUR/JPY at 131.30 tested resistance near 132 Tuesday and may dip again to 129-130 in the next 2 sessions.
Sterling (GBP) at 1.3894 is moving to 1.395, which is seen as 1st resistance on daily candles.