The Dollar Index (DXY) was trading weak in the early Asian session. Today’s low was 101.77 so far just some points above the 101.30 support. The US markets are on holiday today (Martin Luther King Day). It is therefore quite likely that this dip and the subsequent small reversal in the European session has no particular relevance yet. Nevertheless, the 102/101 support zone could hold for the time being in the medium-term picture.
EURUSD -- 1.0833
The currency pair broke above the 1.0797/00 resistance with a large green candlestick on Thursday. The short scenario is therefore over for the time being and the Euro could technically continue to rise. A move towards 1.1000 is now possible and would roughly correspond to a move towards 101 in the Dollar Index. However, I will not be longing the Euro here. I prefer to look for shorts in the direction of 1.1000/1.1200.
GPBUSD -- 1.2215
As suspected in the last update, the 1.2200 resistance has not held and the currency pair was able to close above this level on Thursday and Friday. The 1.2200 level should now work as support. I'm not looking for longs in this currency pair either, but would rather use another dip in the DXY to look for Sterling shorts.
AUDUSD -- 0.6970
The 0.7000 resistance was initially rejected this morning. But the currency pair is not overbought, nor is there any sign of an end to the positive risk sentiment in the short term. So the rally should go a little further. The next major mark on the daily chart is the August high at 0.7137.
Good luck,
Sebbo