Forex Morning Briefing, Major Pairs

Forex Morning Briefing, Major Pairs


Commentary: Sharp 200 pip move North in the EUR after the ECB meeting and press conference as Mr. Draghi said that in September, the ECB will start discussing tapering the ongoing QE which is expected to run till December at least. The market is building in chances of the Taper starting from Jan 2018, see QE taper is talk only. PE

EUR (Euro) at 1.1625 came a little short of the 1.1713 horizontal resistance, the high seen in Augist 2015. If this resistance holds, we could see a dip to 1.1450 over the next couple of weeks. A rise past 1.1713 is also a possibility and triggers a lot of stop loss buying if it happens. We wait, We watch.

Weakness in The US Dollar (.DXY) Index at 94.30 targets 93 over the next 2 weeks. This has pushed down USD/JPY at 111.97 with chances of testing 111.00 next week. Strong bounce possible from the 111.00-110.50 though.

AUD (Aussie) at 0.7880 retreated quite a bit from the high of 0.7988 seen Thursday, in line with a pause to refresh. This could see Aussie down to 0.7800 next week. Will assess its direction then.

Have a terrific weekend.

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