Forex Morning Briefing, Major Pairs

Forex Morning Briefing, Major Pairs


Commentary: The FOMC kept the interest rates unchanged and shrugged off the poor Q-1 weakness in US (0.7% annualized). The June rate hike odds have jumped from 70% to 90%, strengthening the Buck. PE

The US Dollar (.DXY) Index (99.32) has rallied to test 1st resistance at 99.35-50 but yet to rise above it to confirm the near term reversal. It is a touch and go now for USD and a similar situation is seen for USD/JPY at 112.80 which is trading close to 1st resistance at 112.90-113.00. The pair is enjoying the longest rally in Y 2017 from 108.10 to the current swing high at 112.89 and it should be clear in a day or 2 if the rally is to continue or reverse to the Southside.

EUR at 1.0892 corrected a bit due to the recovery in the US Dollar (.DXY) Index but it is not too affected yet as the correction is still shallow so far. The near term strength remains intact as long as EUR trades above 1.0850.

Sterling at 1.2874 is consolidating at the higher marks, but it may bounce back towards 1.3000 in the next couple of sessions if the immediate support at 1.2830 holds.

AUD (Aussie) at 0.7418 has fallen in a much sharper way than expected as the largest decline in Copper at 2.538 since Y 2015 has affected the currency, 1st support comes at 0.7380-70 which must hold to keep any chances of a bounce in tact.

Stay tuned…

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