Forex Morning Briefing, Major Pairs

Forex Morning Briefing, Major Pairs

$DXY, $EUR, $JPY, $GBP, $AUD

Commentary: As expected, US Dollar Index has been hurt by the NFPs data. PE

The US Dollar (.DXY) Index at 96.77) has been hurt by the NFPs data, it remains to be seen if the major support of 96.50-25 can halt the fall, or else 95 or even lower marks come into view.

EUR (Euro) at 1.1272 continues to rise in line with expectations, my target of 1.1300 is close. It must be noted that Euro is now entering a huge resistance cluster in the band of 1.1300-1.1450 and a sudden selling from anywhere within the band is a distinct possibility. Caution in here.

The resistance at 112.00 for USD/JPY trading at 110.57 held and pushed it down as expected and now the support of 110.00 shows signs of holding. In that case, so may expect the pair to trade sideways without any directional clues in here.

Sterling (GBP) at 1.2863 is indifferent to the terror attack in London Sundday as it waits for the election Thursday, 8 June. The range of 1.2750-1.3000 is firm till the election. If the result threatens the current ruling party, then a decline towards 1.2650-00 can be expected. Will wait for the result before I take a firm stance.

AUD (Aussie) at 0.7447 contrary to expectations, firmed up above 0.7400 on the back of a weak USD and a rebound in Iron Ore. It may trade in the range of 0.7360-0.7500 for a few days before making a move if the RBA rate decision out Tuesday fails to introduce any fresh volatility.

Have a terrific week.

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