US Dollar index
The US Dollar index had reversed its movement back in the positive territory after the Senate approval on tax cut with is, in turn, making the vision of Republicans on tax cut look more realistic and the sentiments on the full approval of tax cut are turning highly positive. This news had lifted the investor’s sentiments and the US Dollar Index also enjoying this by showing positive movement
U.S Senate’s approval supported the ambitious promise of the tax cut by the US president Donald Trump which is supporting the greenback and pushed the price up to the bullish territory. This news is expected to affect the market this week as well. However the path of a tax cut is not that smooth as The U.S. Treasury Department released a one-page report on Monday which is showing a different prospect of the tax cut and The Republican Susan Collins, also showed her confusion on the plan which is creating a rough path for the Tax Reform.
On the technical ground, the U.S. Dollar index is in a short-term uptrend and it is expected to reach to the level of 95 in near term. However the price movement can take a short correction and then again start giving positive movement as the Index is still near to the resistance near the level of 94.00 and if the positive sentiments made by the supportive news on the tax cut and the interest rate decision which is going to be released after the FED meeting which is going to end on Wednesday. The outcome of the FED meeting will broadly decide the movement of the US Dollar index in the coming busy week before holidays.
Despite the strong movement of US dollar the pair USD/JPY had faced pressure in past few days and it is showing the strength of JPY supported by the positive economic reports released later last week. This week’s FOMC meeting is going to decide the fate of the pair as the charts are also showing that the USD/JPY pair is sitting near to its resistance zone 114.00 supported by the cyclic high of July which can lead the price to break the bullish movement.
On Technical ground USD/JPY pair is expected to test the resistance zone near to 114.00 levels and if the pair will manage to cross the resistance level supported by strong dollar it can initiate a strong bullish movement which can lift the price near to the 115.50 levels in near term.
After witnessing a very positive week including good housing figures and positive trade balance report the Canadian dollar had halted near to its high on the back of a largely expected rate decision by Bank of Canada which kept its rates unchanged at 1%. The Canadian Dollar had started this week on a flat note near to its resistance zone of 1.2900 levels.
The positive movement of USD along with the strong economic reports released last week we are expecting the USD/CAD pair to cross the resistance zone near to 1.2900 levels. However, the movement in this pair is also largely dependent on the upcoming FOMC meeting outcome on rate decision due on Wednesday followed by BOC governor Poloz speech due on Thursday.
After testing the highs near to the physiological resistance level of 1.2000 levels Euro had dropped to its near-term support level of 1.1600 and bounced back to made a attempt to test the resistance level of 1.2000 level but failed to make a high near this level and ended up making a high near to 1.1950 levels and dropped straight for two weeks followed by a quiet week in terms of economic reports regards of Euro last week.
On technical EUR/USD pair is a forming a lower high and lower lows formation in daily chartings and also the moving averages of medium terms are showing bearish control in the pair which can lead the pair to test the support level of 1.1600 in near term. However, the movement in this pair is going to be affected by the ECB president speech and the upcoming PMI and ECB press conference scheduled on Thursday followed by the FOMC meeting outcome which stays the turning point for the Forex market this week.