In late Asian trading on Wednesday, the DOLLAR index.DXY was down slightly at around 92.25. The latest entry from The Kshitij Consultancy Service provides forward analysis of the usd index, EUR/USD, GBP/USD, EUR/jpy, USD/JPY and Aud/USD futures.
‘The DOLLAR index continues to weaken,’ wrote the Kshitij advisory services team in an article. The euro, Australian dollar and British pound are likely to strengthen against the DOLLAR in the near term.
Here are the main points of the article by Kshitij’s consulting services team:
The dollar index
If the DOLLAR index manages to break below 91.95, it could fall further towards 90. There are no signs of a rally and we are still bearish on the DOLLAR index.
The euro has broken above $1.1920 and could soon head for $1.20. If 1.20 is beaten, the next target will be 1.2095. Keep an eye on whether euro/USD 1.20 or 1.2095 will take a hit in the short term.
The euro edged up against the yen. As long as euro/dollar continues to move higher, there may be room for euro/yen to test 128-130 before falling back from that level. There is a bullish view on the euro/yen.
Usd/JPY has short-term support of around 105. If it holds, then it may rebound to 106.00-106.50 in the short term. But at the moment, usdjPY is still below 106. If the DXY falls below 92.00, then USDJPY may have to test 104.
Australian dollar/US Dollar
The Near-term outlook for the Aussie/USD is bullish with a move towards 0.74. If COMEX copper breaks through $3 / lb, that could also boost the Aussie dollar in the future.
Sterling surged above 1.32 against the dollar, which is likely to test 1.35 higher before falling back from that level. The current view on GBP/USD is bullish.