April 19 2022
The total dereliction of duty by the ECB to protect its currency from inflation, has seen the Euro plumb new depths for the year. The USD remains firmly in the driving seat and will continue to do so for the time being, until ECB policy changes.
Support for the EURUSD is found at 1.0760, which if broken will see further weakness to target 1.0730/1.0720
Resistance is at 1.0810 which if broken, would see the EURUSD rally back to 1.0840.
Onwards and upwards the USDJPY continues. The view from the BOJ is that this is good for Japan. However, if the moves are too quick we could see some MOF Dollar selling to smooth out the JPY’s depreciation.
The USD is clearing resistance at 127.30/40 this morning and is looking to be heading towards 127.80/90. It makes me wonder what constitutes the JPY weakening too quickly.
Support is at 126.70 and 126.20 if we see a correction.
The GBPUSD slipped back below support yesterday at 1.3040, an area which will now serve as resistance. If the GBP can break back above this resistance, then further gains to 1.3080/1.3090 should be expected.
However, while we are below the 1.3040 Pivot, you will see continued downside pressure looking to test last weeks lows at 1.2980/70.
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