Market Morning Briefing: The Aussie Bounced Back Sharply This Week
The US Dollar Index (93.64) is holding well above the support of 92.54 but has come up to test immediate resistance near 94.00-94.50 which if holds could push the index again towards 92.50 in the coming sessions. In case the index breaks above 94.00 just now, we may expect a further rise towards 95.00 and higher going forward.
The Euro (1.1729) could come down to test support near 1.1650 but in case the Dollar Index comes off from immediate resistance levels, Euro could strengthen towards 1.1800-1.1850 levels again. Near term trend likely to be seen within 1.1650-1.1850 region.
Dollar-Yen (109.438) is trading above important support near 108.13 and could possibly bounce back from there. Only on a break below 108, if seen, can we look at lower levels of 106. Till then we prefer a bounce from 108 in the near term.
The Euro-Yen (128.40) is also trading above important support at 128 and while that holds, has some chance of moving up towards 129 again. On a break below 128, we may revise our targets towards 125.
Pound (1.2886) is also trading just at crucial support levels and if that holds could take the currency pair towards 1.2930 or higher in the near term. We also do not negate some chances of testing 1.2790 before a sharp bounce is seen. Overall some sideways movement is possible in the coming sessions.
The Aussie (0.7892) bounced back sharply this week from just above important support near 0.78. There is enough room on the upside towards 0.80/81 while above 0.78.