The U.S. Dollar Index tested the ten months lows and traded with negative sentiments last week, and ended the week on a negative note on Friday and crossed the immediate support level which is an indication of the potential downward moment in the Index in near term.
The US economic reports continue to disappoint traders and it released below expectation majority of the time which clearly put pressure on bulls and gave bears a chance to dominate the markets which are still intact. The dollar index had lost 0.62 points on Friday and crossed the support zone and gave a weak closing.
The coming week is expected to be another losing week for Dollar Index and the next support zone is falling near to the level of 93.90 levels and if the Index will break this zone in coming trading session then it can continue its downtrend.
The GBP/USD pair started the week with the negative note and gave yet another weak opening by making a low of 1.2811 but after that, it took support at this level and bounce back from this point and gained 218 pips on weekly basis. GBP/USD had reversed its direction and gave a whopping closing on Friday and closed the week near to the resistance zone of 1.3100.
If the pair will manage to give positive movement on Monday then it can test the next resistance zone of 1.3260 in near term. The falling dollar is supporting the price movement but the internal political instability can affect the price movement and the pair can stop its gaining movement if not got support from the economic reports.
The euro zone is expected to beat the US on economic and political fronts as the ECB still playing with the market by keeping its next moves uncertain. It looks like they can announce QE tapering in September, on the other hand, they try to release mixed messages in the markets in order to keep the pair and bond yields in control. The doubts over the next US rate hike and soft US economic reports will defiantly work for Euro and it can give positive movement in the coming week.
On technical ground the EUR/USD pair is at its resistance zone but the bullish closing of Friday increases the chances of a break out and this can give the bullish a chance to take over the charge and push the price to the next resistance zone of 1.1600, However the resistance is strong and it can give the bullish a tough time and this can result in a sideways movement in next week.
The first rate hikes after July 2015 had supported Canadian dollar big time and resulted in a weakest weekly closing since April 2016. The USD/CAD pair continued its downward trend and the recent rate hike from BOC also pushed the price further down and made it cross the near term support level.
On the technical ground the pair had crossed its support level and sustaining near 1.2650 levels, this sideways movement is indicating another potential big movement in the pair. The medium term down trend in the pair is still intact and it can result in a price movement till the next support zone near 1.2430 levels.