The U.S. Dollar Index traded with positive note last week where it started the week with strong bullish sentiments and continued the week with bullish emotions but lost few points in the middle of the week, but managed to give a positive ending of the week by gaining 0.73 on a weekly basis.
This week is going to be an important week for the Dollar Index as it is trading at a very crucial level near the resistance zone which showed its relevance in the near term by knocking off the bulls several time in the past. The movement of this week will decide the fate of the U.S. dollar and clear the trend of the index as this resistance have the power to knock out the bulls and turn the index on the negative territory. However the breakout of this resistance level can result in a continuation of the bullish trend with a big positive movement in the index.
On the technical grounds the Greenback is showing signals of a potential bullish movement in coming future if it manages to cross the short term resistance zone near 97.50 levels again in the coming week. we can expect the coming week to be a volatile week for the U.S. Dollar Index and if the Index will cross the resistance zone of 97.50 in coming trading sessions by continuing the short term bullish trend then it may test the next resistance zone near 99.00 level in coming future. However the movement in the U.S. Dollar Index can be influenced by the developments in the blooming trade war between U.S. and China along with the Brexit situation can also influence the market sentiments largely.
Last week was a volatile week for Euro where the currency lost some points in the starting of the week due to the positive movement of US Dollar but found support near the 1.1300 levels but again turned negative in the last trading sessions by setting off all the gain it made in the middle of the week and gave a negative closing of the week.
The upcoming week is also expected to be a tough week for Euro as on technical ground the pair is showing signals of a potential bearish movement in coming future the EUR/USD pair is expected to test the support zone near the level of 1.1300 in near term and if the EUR/USD pair crosses the short term support zone near 1.1300 in coming week then it can result in a much deeper drop in the pair.
On economic front the next week is a comparative silent week for Japanese yen in the absence of any major economic reports in JPY front.
On technical ground the pair is trading sideways after giving a strong bearish movement in the starting of the month and currency consolidating with slightly bullish sentiments. However the negative sentiments created by the trade war between China and the U.S. is expected to dominate the movement of this pair in coming future and this bearish movement is still intact as the weekly and daily candles which is indicating that if the pair crosses the short term support zone near 112.00 levels this can result in a fall which can lead the pair near to the level of 109.80 in near term.
The last few weeks for this pair were highly volatile on the back of the Euro zone economic stress and Brexit negations which kept the investors and traders in confusion. The indecision of the traders is clearly visible in the weekly charts where we can see the push and pull between the bulls and bears which resulted in a victory of the bearish which led to a negative closing of the weekly.
On technical ground the down trend in the pair is still intact which can be seen on weekly chart we are expecting this bearish trend to kick in this week which can result in a steep fall in this pair. The down trend in the GBP is still on the move and it is expected that the pair which had experienced strong bearish movement in the past week can result in a yet another negative movement this week and again start falling in near term, as the Pound is still not getting any positive push which is keeping the overall sentiments for this pair negative.
On economic front there isn’t any positive developments in the Brexit negotiations which is continuing to put bearish pressure in this pair and the bulls are still sitting on the bench and waiting for a positive outcome to jump back again in the market and it this pair some relief from the recent drop.