At time of writing the Dollar-Index trades at 94.443 just ahead of 94.561 (high of 2021; 10oct). The FED has delivered tapering on wednesday as expected with 15 Bil. reduction per month. With respect to the Euro this was already enough to put pressure on EURUSD. Whereas the Dollar-Performance against AUD and GBP was in particular fueled by dovish central bank decisisions of the RBA and the BoE this week.
With all cards on the table now we have to wait for some decisive supports to break. If this happens in a sustainable manner the Dollar could run higher until the end of the year.
EURUSD -- 1.1539
All eyes on 1.1524 (low of 12oct) / 1.1500 (big psychological lvl). Below that support zone is a lot of space. So I recommend to keep longs very tight from here.
GBPUSD -- 1.3430
The short idea we discussed in Morning Call #8 went great. The next big support now is the 1.3412 (low of 29sep) and the lower band of the channel is somewhere around 1.3320 today. The recent sell off looks slightly stretched now and I would take profit on Dollar longs here. Nevertheless the move can still accelerate and I advise against GBP longs here.
AUDUSD -- 0.7372
The weekness of the Aussie is somewhat surprising amid risk-on markets. If the pair is going to close below its 50 ema (0.7396) today the next session could deliver a leg lower again. Next level of supports can be found around 0.7330/0.7300 (lower Bollinger Band and a couple of supports/former resistances).
Good luck,
Sebbo