Forex Morning Briefing, Major Pairs
$DXY, $EUR, $JPY, $GBP, $AUD
Commentary: USD the weakest major currency of the week.PE
The US Dollar (.DXY) Index at 92.31 is just a bit away from my target of 92.00. But, watch resistance at 92.67 and 93.00 in here. The downtrend since December could start unraveling if these are broken.
EUR (Euro) at 1.1913 can rise to 1.20, but the strength of the move North could be waning. We have to keep an eye on support at 1.1870-50 now. Be careful in here. Dovishness from ECB’s President Draghi Thursday could lead to some weakness in the single currency.
EUR/JPY at 129.50 has come to my target of 129.45. Let’s see if medium-term support at 129.00 holds. If it holds, may see a rise to 131+ going into next week. There will be trouble if this support breaks.
Japanese Yen (JPY) at 108.70 strength is from the ongoing NKorean issue, also reflected in Gold rising to 1344. At the same time, there can be a hope of a rebound in USD/JPY while the horizontal support 108.25-15 holds. A clear break there could be very Bearish, so be very careful in here here to.
Sterling(GBP) at 1.3035 breaking out of its range. This could be significant. A week close above 1.30 could point to 1.33.
AUD (Aussie) at 0.7994 marked a high of 0.8028 Tuesday. Chances of eventual rise to 0.81 are strong while trading above support at 0.7950 in here.
Seeing some consolidation coming in on RMB Yuan (USD/CNY = 6.5321) which bounced from a low of 6.5150 Tuesday.