Forex Morning Briefing, Major Pairs

Forex Morning Briefing, Major Pairs

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

Commentary: Geopolitical tensions between US and NKorea has tempered the risk appetite a bit. PE

The action is driving USD/JPY at 109.90 to the lower end of the 109.30-111.10 range. If support at 109.50-30 holds, then a recovery to 111.00 can be expected near term.

The strength in JPY, and weakness in EUR at 1.1735 pushed EUR/JPY at 128.95 below the trendline support and towards the 5-wk low to 128.55, which must hold to keep the Northside possibilities intact. A clear break below 128.50 for EUR/JPY implies extended weakness for EUR, which then may fall to 1.16.

The US Dollar (.DXY) Index at 93.66 may test to resistance at 94.10-40 if EUR keeps going down towards 1.16 before USD Bears return.

Sterling (GBP) at 1.2983 met my immediate Southside target at 1.2950, but the decline may not be over yet. A corrective bounce from 1.2950-30 cannot be ruled out, but the larger downtrend may drive it South to 1.2850 in here.

AUD (Aussie) at 0.7873)extended its correction beyond 0.7875 despite a rise in Copper, while the correction remains shallow considering the rally off of  the May low at 0.7325 to the July high of 0.8065, and the broader trend remains firmly North, a break above 0.7950 is required to resume the  uptrend.

Stay tuned…

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