The US Dollar index, which measures the strength of greenback against a trade-weighted basket of six major currencies, lost ground on Friday and closed the week on a negative note. The bearish movement and soft economical data reflected in the price movement and the index continued its bearish movement on Monday.
The global political instability and expected soft economic reports is an aria of concern this week. And this can lead the index to come near to the support level of 95.00 in near term. The investors are expected to trade cautiously and this can lead to a flat week ahead.
On technical ground the index showing bearish signals and control of bears over bulls can be spotted in near term candlesticks patters easily. The index is also not comfortable to break the level of 97.60 as it rejects these levels with a strong bearish candle whenever it reaches this level. This rejection is indicating the control of bears and this is expected to continue in coming future.
On the back of the absence of strong economic events and the increasing global political stress we expect the index to trade range bound with bearish sentiments in near term.
French parliamentary elections results on Sunday gave the pair a good start of the week but the pair was unable to hold the gaining momentum and dropped on Monday despite a fairly positive market sentiments.
On technical ground the pair is now at a crucial support level and the closing of Tuesday will be a key trigger in order to predict the future movement in the pair.
The start of the negotiation on the Brexit will be the point where investors keep an eye this week which started on Monday. The negotiation statements between Britain’s Brexit Minister David Davis and EU chief negotiator Michel Bernier is again a risky bet.
After losing the majority by the UK Prime Minister it is expected that the impact of her negotiation talks can turn to a weak shot overall.
After the statement of Bank of England Governor Pound lost ground on Tuesday. We expect this bearish movement to continue in coming future also as technically the medium term charts are showing bearish pressure in the currency.
The falling Oil price effect was seen in the movement on USD/CAD the pair traded with cautious sentiments on Tuesday despite the positive technical signals. On this note we expect in order to give a good positive movement USD/CAD need a support of Oil in coming future.
This makes us believe that this pair is expect to trade sideways in coming trading session as the Oil is still looking weak and as correlation of Oil price on USD/CAD movement will be a point which can hold any bullish movement in the pair.