Original Analysis by FXStreet, attributed to Sunil Andhani
Rewritten and expanded by AI, based on the original article found on FXStreet
Title: Forex Morning Briefing: Euro Slumps Toward 1.1400 in Bearish Outlook While Dollar Index Strengthens
The forex market opened today with notable movements across the major currency pairs, largely influenced by rising U.S. Treasury yields and broad dollar strength. The Euro continues to experience bearish momentum, slipping closer to the 1.1400 support level against the U.S. dollar. Meanwhile, other major currency pairs such as the Japanese Yen, British Pound, and Australian Dollar also display significant technical patterns that could determine their near-term direction.
This report provides a detailed technical overview of the major currency pairs, offering insights that traders may find useful for both short-term trades and broader strategic decisions.
EUR/USD: Bearish Momentum Continues Toward 1.1400
– The Euro remains under pressure as rising U.S. Treasury yields and a generally stronger dollar weigh heavily on its performance.
– EUR/USD traded around 1.1467 during early Asian hours with downside pressure building after failing to hold onto key support levels.
– On the weekly chart, support is now visible around 1.1400. If this level breaks, the pair may extend losses toward 1.1300 in the medium term.
– The current structure indicates a bearish trend, characterized by lower highs and lower lows.
– Resistance can be identified around 1.1500–1.1550, which is likely to cap any short-term rallies unless there’s a strong reversal in dollar sentiment.
– A break below 1.1400 could prompt a retest of key Fibonacci support around 1.1350, aligning with longer-term bearish projections.
Outlook: Bearish toward 1.1400 with a possibility of extending weakness toward 1.1300 on sustained USD strength.
USD/JPY: Firm Uptrend Holding Above 151
– The U.S. dollar continues to maintain a bullish trend against the Japanese yen.
– USD/JPY is trading comfortably above the 151.00 mark, staying within the upward channel established in recent months.
– The pair reached intraday highs near 151.53, drawing closer to the March 2022 high around 151.94.
– Recent support can be seen near 149.50, and unless we see a sharp move back below 150.00, the uptrend is likely to remain intact.
– Traders should monitor any signals from the Bank of Japan related to potential intervention, especially if the pair approaches historical highs near the 152 level.
– Technical indicators support further upside with MACD and RSI maintaining bullish configurations on both daily and weekly timeframes.
Outlook: Bullish toward 152 unless sentiment shifts significantly or authorities intervene in the FX market.
GBP/USD: Neutral to Bearish in the Short Term
– The British Pound remains relatively range-bound, unable to break decisively above the 1.2300 resistance level.
– GBP/USD hovered near 1.2219 during the Asian session, dealing with the weight of a strong dollar and stagnant domestic economic data.
– The pair continues to trade below its 50-day and 200-day moving averages, suggesting a lack of upward momentum.
– Immediate support is located around 1.2100, while resistance remains firm at 1.2300 and 1.2400 levels.
– A break below 1.2100 would reinforce a bearish scenario, potentially paving the way for a decline toward 1.2000 or lower.
– Any positive surprises from UK economic releases or a dovish Fed pivot could alter the current trend, but such developments remain speculative for now.
Outlook: Slightly bearish unless the pair breaks above 1.2300 with strong volume.
EUR/JPY: Limited Upside With Potential for Reversal
– The Euro is consolidating gains against the Japanese yen
Explore this further here: USD/JPY trading.