#forexbreakfast focus forex (eng)
The main driver of the past week was the renewed weakness of the dollar against all major currencies. This weakness was caused by disappointing macro data on the US labor market. The bad data effectively dismiss discussions of reducing tapering. The euro-dollar exchange rate returned to its highs since the end of February. The Euro he already had was up after the words of EBC member Kazaks regarding the tapering decision as early as June. Volatile week for the pound, which after losing ground due to the BOE meeting which announced a slowdown in the pace of purchases, regained strength at the beginning of the week thanks to the outcome of the elections. The victory of the conservatives overshadowed the victory of the nationalist party in Scotland which missed an absolute majority for a seat. A mixed week for the emerging currencies sector. Strong recovery for the Brazilian real, the best currency of the week. The currency benefited from the BC rate hike, which also predicted a similar hike in June. Volatile week for the Turkish lira after the confirmation of the rates by the BC. Lastly, the Colombian peso collapsed after the resignation of the finance minister in the wake of the turmoil in the country.
Euro / Dollar
It has resumed the bullish phase after the break of the trendline which has stemmed the bullish pressures since the beginning of the year. The proximity to the resistance at 1.2184, with possible divergence on the oscillators, could take profit in the short term. On the upside, a break of 1.2184 could lead to 1.2285. On the downside, a break of the support at 1.1880 could lead to further declines.
Euro /Great Britain Pound
During the week the Eur / Gbp exchange rate was in the 0.8623 / 0.87 range; arriving in the lower part following the elections. On the downside, on a break of 0.8623, the target could be 0.8425. On the upside, a break of 0.87 could lead the exchange towards 0.9783 and subsequently to 0.8791.
Euro / Yen
The Eur / Jpy exchange rate was still on the rise, reaching the 133.12 area. Excess signals come from the oscillators. The trend remains up and only a break of the support at 130 could change the direction of the move. On the downside, supports at 131.24 and 130.96 remain to be monitored.
Euro / Real
Upward week for the real that broke the uptrend line that started in June 2020. On the downside, if it closes below 6.37 this week it would open the way for 6.18. However, the reported strong oversold increases the possibility of a rebound in the short term.