Forex Morning Briefing

Forex Morning Briefing

Forex Morning Briefing


Commentary: US President Donald Trump announced more than $50-Bworth of import curbs on China Thursday, raising fears of a possible trade war. The implication of this move has already been seen on JPY, which has strengthened to a 17 month high. Whether this move leads to further weakening of USD will come in the days ahead. PE

US Dollar (.DXY) Index at 89.59 seeing 1st resistance near current marks witch could push it down further. The 1st downside target is support on weekly line at 89.3-89.5. This is Key support whose break could lead to medium term Bearishness for the Buck. The next target would be support at 88.5.

EUR (Euro) at 1.2336 marked a high of 1.2390 Thursday breaching 1st resistance at 1.236-1.237 and dipped. Another breach of this resistance could take the single currency to higher resistance at 1.255-1.260. This is a Key mark, whose breach implies medium term Bullishness for EUR.

Note: There is immediate support near 1.2275 on the daily candle.

USD/JPY at 104.82 has dipped to a 17 months low and is testing support at 104.80. If this break of 105 holds, the next target is  103.75, another important long term support mark.

EUR/JPY at 129.30 has been pushed down from 131, and contrary to expectation, it has broken Key support at 130. If the Euro continues to respect resistance at 1.2375 and the USD/JPY continues to be Bearish towards 103.75, expect EUR/JPY to turn Very Bearish medium term.

Sterling (GBP) at 1.4117 paused after a significant upmove from 1.40 to 1.4220 Thursday. There could be some resistance near 1.43, if 1.43 is breached, it could see a test at 1.44 next week.

Have a terrific weekend

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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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