$DXY, $EUR, $JPY, $GBP, $AUD
Commentary: The markets may wait for the ECB and BOJ meets before taking the next major step. PE
The net movement of EUR (Euro) at 1.1539 in the last 24 hrs is almost Zero as it waits for the ECB policy meet Thursday. The trend is North but the net position in the single currency is the largest since Y 2011 and any surprise from the ECB or any other corner may trigger a very sharp fall.
The US Dollar (.DXY) Index at 94.76 may have attracted too many Shorts. These 2 crowded trades may invite painful surprises, as the previous historical instances show. High Caution warranted at the current marks this week.
EUR has strong resistance in the band of 1.16-1.17 and .DXY has major support near 94.15-00.
USD/JPY 112.09 registered a low of 111.65, close to my Southside target at 111.35. With no clear reversal signs yet, the lower support of 111.00 may be tested before any major Short covering happens.
AUD (Aussie) at 0.7925 is rising very sharply towards may target of 0.8150-75 and the Bullish momentum remains intact above the support near 0.7835-00. The target may be hit by the next week.
Sterling (GBP) at 1.3028 is in a minor corrective mode after marking a high of 1.3125. A pause here can be good for its technical strength, which may help it later to rise above 1.3125 and rally towards 1.32-1.34.