Forex Morning Briefing, Major Pairs

Forex Morning Briefing, Major Pairs


Commentary: Thursday is going to be a significant day for the markets as UK election, ECB policy decision and ex-FBI chief Comey’s testimony will take place, seeing investors playing it safe till then with the prevalent trend continuing so far. PE

The US Dollar (.DXY) Index at 96.64 tested the Key resistance at 96.50 which sets it for a turnaround if the events Thursday dictate.

EUR (Euro) 1.1265 is overbought and the proximity of Key resistance cluster at 1.1300-1.1450 which may invite fast selling. If Euro really weakens in here, USD may bounce back from its support of 96.50-25. Note: the single currency trend is up, the USD trend is down, but are prepared for the possibility of a sudden trend reversal, a 45-50% probability.

USD/JPY at 109.47 has marked the Southside target of 109.20, next comes 108.00. It may rise only if .DXY manages a turnaround in the next couple of sessions.

Sterling (GBP) at 1.2900 is flat, and may continue for the next 24 hrs till the UK election Thursday, 8 June. While a break beyond the range of 1.2750-1.3050 is required for a clear trending move, if the result threatens the ruling party, then a decline towards 1.2650-00 is expected but prefer to wait for the actual result before taking a position.

AUD (Aussie) 0.7536 surged on the back of the annual GDP coming in line with the expectations and the RBA seeing the growth accelerating above 3% in the next 2 years, 1st resistance at 0.7550-60 must broken to extend the rally to 0.7600, and higher.

Stay tuned…

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