Forex Morning Briefing

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

Commentary: USD is weakening. PE

The US Dollar (.DXY) Index ar 89.51 down from 90.5 since Monday. The US CPI data release Wednesday is being looked at very closely for cues on inflation trends.

Note: Higher than expected inflation numbers for January 2018 could lead to some near term selloff in both equity and debt markets, weakening USD more in the next 1-2 weeks. On the 3-Day candle and weekly, support at 88.5 may be tested.

EUR (Euro) at 1.2382 has risen 100 pips as .DXY fell by approximately 1 point over the last 2 sessions. If .DXY falls by 1 more point towards 88.5 by next week, EUR could test resistance on the weekly line near 1.245-1.248.

USD/JPY at 107.09 did not see the strong support zone at 108.0-108.5 hold up, breaking South. This Southmove has broken long term support on the weekly lines, and could signal the onset of Bearishness for the pair medium term.

Note: The next target could be 106.5 seen as supports on both 3-Day and weekly candles.

EUR/JPY at 132.51 did not move up or garner renewed JPY strength. It could again test horizontal support near 132 on the 3 Day candles by next week as EUR moves to 1.24 and USD/JPY to 106.5.

Sterling GBP) at 1.3913 may have found support ate 1.380-1.385 on the daily and 3 day candles, which negates my view of seeing it drop to 1.37.

Note: We wait and watch for confirmation in here.

Stay tuned…

.DXY, AUD, Bullish, consolidation, direction, EUR, forex, GBP, jpy, pairs, range

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.