The U.S. Dollar Index managed to break its ranging movement near to the yearly high with a strong bullish movement last week, the index had traded mostly with bullish sentiments throughout the week and in the last trading session it crossed the recent consolidation with a strong bullish candle and made a weekly high of 96.31 after testing the support near 94.00 levels last week and gave a bullish weekly closing by gaining 1.17 points on a weekly basis.
On the technical ground, this week is also expected to be a bullish week for U.S. Dollar. The dollar index which measures the strength of the U.S. Dollar against a basket of currencies is trading on the yearly highs and the next resistance zone is standing around 98.00 below this level there isn’t any resistance which has the potential to stop the movement of U.S.D. in near term.
USD INDEX Daily Chart
On the other hand, the blooming tensions between the U.S. and China on the trade relations and tariffs had increased in recent time which can affect the price movement. Also the absence of any major economic report which has the potential to move the market the U.S. dollar index is expected to fallow the current trend with bullish sentiments in the coming week.
On the fundamental front, the EURO is in a deep pressure as the sharp slide in the Turkish Lira played an important role in the development of bearish pressure on the EUR/USD pair. The coming week is expected to be another bearish week for the Euro on the back of the political jitter in the economy which had lead to a breakout of a strong technical support level in recent times. The break of the support and psychological level of 1.1500 is expected to push the rates near to the level of 1.1200 in coming future. In the absence of any major economic report or speech, the majority of the movement in the pair EUR/USD is expected to be derived from the U.S. dollar movement and the developments in the domestic stressful situations which is expected to keep the pair in its downtrend.
EUR/USD Daily Chart
Technical outlook: On the technical ground the pair EUR/USD had crossed its support zone of 1.1550 in last trading session of the last week with a heavy bearish movement and it is expected that the increased bearish pressure built by the breakout of support zone is expected to push the price further in the negative territory in the coming week by following its long-term downtrend which is still intact.
the slow development over the Brexit is continuously keeping the GBP/USD under pressure. Last week has also stayed negative for GBP/USD and pair traded with bearish sentiments throughout the week by continuing its downtrend and dropped 242 pips with heavy selling pressure on a weekly basis.
On the technical ground, the downtrend in the GBP/USD pair is still strong and the pair is expected to continue its downward trend in coming future as Pound is still not showing any strong bullish signals currently however it is expected that the GBP/USD pair will give a sideways movement in the starting of the coming week and again start falling after testing its downtrend line as the overall sentiment on GBP/USD is still negative.
GBP/USD Daily Chart
The pair USD/JPY gone through a strong bearish movement last week and currently, it is showing a reversal signal in the higher time frame. This reversal pattern breakout can result in a deep downfall in the pair in the coming future.
USD/JPY Daily Chart
Technical outlook: On the technical ground the USD/JPY pair is expected to trade with bearish sentiments in coming week as it is showing a reversal signal of its long-term bullish trend and a breakout of this pattern can result in a sharp fall in the USD/JPY pair which can push the price to test the next support zone of 109.00 levels in near term.