#forexbreakfast focus forex (eng)
The weakness of the dollar against almost all major currencies has been again the protagonist last week. The Eur / Usd exchange rate, after hitting 1.226, stabilized around 1.22. Good week for the Pound, after the words of BoE member Vlieghe who hinted at a rate hike for the second quarter of 2022. The Eur / Gbp exchange rate then stabilized around 0.86. In the emerging sector, a good week mainly for commodity currencies. Best performance of the week for Real followed by South African Rand to Colombian Peso. The worst currency of the week has been the Turkish Lira, with the Eur / Try exchange rate rising to 10.47, due to Erdogan’s decision to replace one of the 4 deputy governors. The USD / CNY exchange rate is at a 3-year low (6.36) after the Chinese authorities claim that they are comfortable with a strong currency. However, the PBOC signaled the potential weakness of the Yuan in the case of Fed monetary policy normalization.
Euro / Dollar
Unchanged week for the Eur / usd exchange. The indications remain the same as in the previous week. On the upside, the first resistance is in the 1.2284 area followed by the resistance band in the 1.2330 and 1.2350 area. On the downside, the supports at 1.1974 and 1.1940 should be monitored.
Euro / Pound Sterling
Neutral week for the Eur / Gbp exchange rate which remained around the 0.86 area. The bearish pressures were well contained by the 0.8560 support. Only the break of this last support could lead to a greater bearish movement on the exchange rate. In case the target could be the support at 0.8426. On the upside, only the break of the resistance at 0.87 could give more momentum to the exchange.
Euro / Yen
At the highest level since February 2018. The break of resistance at 133 gave strength to the bullish move, targeting 134.40. Then there are the highs from 2018. 137.50. On the downside, only the break of the uptrend line could change the current trend.
Euro / Turkish Lira
After breaking the resistances that formed the all-time highs, the exchange rate came close to 10.50. The resistances to be monitored are at 10.4750; 10.50 and 10.5444. Both oscillators are in the overbought zone.