Forex week of consolidation
Last week was a week of consolidation for the Greenback as it moved in a short-range and gained only 0.34% on a weekly basis by giving a closing at 97.36 and making a high of 97.47 and low of 96.70 respectively.
On technical ground the dollar index had taken support and manages to sustain above the level of 96.50 which comes near the short-term support level. By looking forward this market is expected to give a positive movement in the coming trading sessions on the back of the weekly reversal bottom which can push the index price up.
If the Dollar Index manages to break the resistance zone of 97.60 to 97.80 in coming trading sessions and give a daily candle closing above this resistance levels this sustained movement will signal the presence of buying interest and this could result in a short-term rally.
On the other hand if the index will find it difficult to cross the resistance at 97.60 it will signal the selling pressure on the currency and this can lead to a bearish movement. If the bearish movement will push the index below the level of 96.50 it will signal the control of bears and this can lead to an accelerated down movement which can test the level of 95.00.
Overall the index is at a very critical point when we expect that this week the volatility in the index will return on the back of the increasing Trump administrations problems which can be a betting point for the investors.
Major currency pair forecast
EUR/USD also traded flat last week and we expect it to continue its consolidation this week also. However the currency pair is near to its support at 1.1150 and the breach of this level can push the price further down to the level of 1.1025 in near term on the back of the soft economical data this week
GBP/USD After facing rejection near 1.3000 levels the sterling pound experience bearish pressures this week. GBP/USD is expected to remain in pressure this week also on the back of the news popped up last week that if the ruling party in Scotland wins the upcoming elections on 8th June we can expect that they will go for the referendum for Independence from the UK that the ruling party in Scotland, if it wins in the elections on June 8, is likely to go for a referendum for Independence from the UK. This news if expected to keep the bearish pressure on the pound irrespective of what happens to the US dollar.
USD/JPY in line with the other currency pairs the USD/JPY pair also traded flat last week and this week will also be a challenging week ahead as There are no major economical data is going to release this week from Japan, however on Tuesday’s the U.S. is going to release its Core PCE Price Index m/m report and Personal Spending reports and later on this week the U.S. will release its Employment reports. The economical reports going to release next week is expected to increase volatility in the market as The Fed had already stated that the upcoming rate hike will be depended on the supportive economical reports which will help gauge future economic growth.
The major upcoming economic reports this week are going to release on June 2nd including the U.S. Non-Farm Payrolls report, Average hourly earnings and the unemployment rate.
Note:- The above report has been released by Invest Tipster analyst team keeping in mind the best interest for the traders in Forex market, But it is also necessary to apply live market analysis to get correct buying and selling level for getting profit in the Forex market. If would like to get support from us you may sign up for the services and we will assign a analyst to advise on the Forex market trading.
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