Forex Morning Briefing, Major Pairs
$DXY, $EUR, $JPY, $GBP, $AUD
Commentary: No new triggers in the market and the major pairs may settle in moderate ranges near term. USD/JPY broke out of a 5-month long channel after worse than expected earnings in Japan. Labor cash earnings for 17 March came at -0.4% Vs an expectation of a rise of 0.5% and the 17 February figure of +0.4%.PE
Long liquidation in EUR at 1.0930 drove it lower but the Bears still need a break below 1.0900-1.0880. Otherwise, another bounce towards 1.1000 from the support cannot be ruled out. The chances of sideways consolidation in 1.09-1.10 for a few sessions are a possibility with a breakout from this range required for a directional move.
USD/JPY at 113.20 broke above the resistance at 113.00 and tested the next minor resistance of 113.39 above which the rise can extend to 114.60-115.00, the bias is Bullish.
The US (.DXY) Dollar Index at 99.11 pushed higher but unless a break above the resistance of 99.50 is seen, the Bullishness cannot be relied upon. In case EUR begins to oscillate in the range of 1.09-1.10, The US Dollar (.DXY) Index may follow suit by trading sideways in the range of 98.50-99.50 for the next few sessions.
Sterling at 1.2942 is in pause mode with 1st resistance coming at target of 1.3000 and 1st support at 1.2900 followed by 1.2840. Bias is Bullish with the possibility of horizontal trading within 1.2840-1.3000 near term.
AUD (Aussie) at 0.7361 is negating the chances of recovery as it extends the decline due to the weakness in commodities. 0.7300 is in consideration now as the next Southside target, but it remains to be seen if it manages to trigger a bounce.
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