Forex Morning Briefing, Major Pairs

Forex Morning Briefing, Major Pairs

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

Commentary: The markets may wait for the ECB and BOJ meets Thursday before taking the next major step. PE

USD/JPY at 111.97 is being watched for the reaction after the BOJ policy decision due now. Expect the support of 111.00 to be tested before any major short covering happens.

Then comes the ECB policy decision which may affect EUR (Euro) at 1.1525) which has been trading quietly for the last 2 sessions.

The trend remains firmly North but it must be noted that the net position in the single currency is the largest since Y 2011 and any surprise from the central bank or any other corner may trigger a very sharp correction.

Similarly, The US Dollar (.DXY) Index at 94.84 may have attracted too many Shorts. These 2 crowded trades may invite nasty surprises eventually as the previous historical instances show. So, caution warranted in here.

AUD (Aussie) at 0.7940 has almost tested 0.80 with a high of 0.7990. While 2 days rest after the sharp rally cannot be ruled out, the target at 0.8150-75 is unchanged and a break above 0.80 may provide more Northside power.

Sterling (GBP) at 1.3024 is in a corrective mode which is expected to be followed by another leg up to 1.3125  then to 1.32-1.34 next.

Stay tuned…

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