Forex Morning Briefing
$DXY, $EUR, $JPY, $GBP, $AUD
Commentary: Nothing new. PE
The US Dollar (.DXY) Index at 89.6 has broken below support in the daily line. And now likely to test support on daily candle and weekly line near 89.25 by in the next few sessions. The US CPI data release is unlikely to have any positive effect on USD strength, as I expect moderation in inflation which should not raise bond yields.
EUR (Euro) at 1.2358 tested to 1.2225 last week and has been rising for the past 2 days. It should 1st resistance near 1.2425-1.245 by in the next few sessions. A clear break above 1.25-1.26 implies medium term Bullishness for the single currency. While EUR trade below 1.25-1.26 see it ranging within 1.215-1.255 seen for the past 2 months.
USD/JPY at 107.12 saw support at 106.9 Tuesday and could rise to 107.4 and above targeting 107.9. I prefer a dip to 107 rather than a rise past 107.4 just now. We have been saying that 107.9-108.0 is a Key mark for the pair. A breach of that mark implies medium term Bullishness.
EUR/JPY at 132.39 moved up further after 1st resistance. The 21-Wk MA line on the weekly line at 133 could provide some resistance.
Sterling (GBP) at 1.4178 is trading below 1.42. If 1.42 is breached, see resistance at 1.43. Medium term a clear break of 1.430-1.435 could imply Bullishness.