Forex Morning Briefing, Major Pairs
Commentary: We await US NFPs in a few hours, USD remains weak off of soft US ISM numbers.PE
US Dollar (.DXY) Index: A worse than expected reading of US ISM manufacturing index keeps .DXY at 92.78 weak and on track to my Southside target at 92.00.
EUR (Euro) at 1.1875 seeing a narrow ranged day as traders wait for the US NFPs data in a few hours. Weak NFPs data will be beneficial for the single currency to test 1.20 and push USD to 92.00.
USD/JPY at 110.14 saw sharp rejection exactly at 111.00-10 my resistance mark to test sub-110.00. Near term, a trending move can be expected next week, but only a clear break from the range at 109.30-111.10. Otherwise, the pair may trade in this range for a few more days before we see a breakout.
BOE kept the rates unchanged but a cut in the GDP and wage growth projection triggered a sharp decline in Sterling (GBP) at 1.3139 pushing it to near term support at 1.3100. A recovery can be expected if it manages to stay above 1.3100-1.3050. There is the probability of a breakdown below 1.3050 signaling a Top at 1.3260. We wait, We watch.
AUD (Aussie) at 0.7970 is in consolidation mode, and ranged within 0.7875-0.8050, which may continue for a few more sessions. The larger trend is North and the higher targets of 0.8100-70 are unchanged.