After giving a strong bullish movement in the starting of the month by continuing its gaining streak the U.S. Dollar Index mostly traded sideways last week and ended the week on a positive note near to the medium term resistance zone near 92.30 levels. The majority of U.S. Dollar Index was influenced by the FED interest rate decision which kept the market in a tight range.
This week the U.S. Dollar Index is expected to take a small correction on the back of the speculations over the interest rates which will stay in focus as the upcoming speech of Federal reserve chairman Powell due on Tuesday along with the PPI and CPI data due later on this week is expected to keep the market under pressure.
U.S. Dollar Index 1H chart
On technical technically ground The Greenback is in showing signals of an upcoming corrective movement. However, the bearish movement is limited and the U.S. Dollar Index is expected to continue its bullish movement after the correction.
However the movement in the U.S. Dollar Index is largely depends on the development on the trade relationship between China and U.S. alongside the readings on the interest rates, if the development in the trade relationship will turn to be beneficial for the U.S. and if the tension between the US-China decreases it can give a positive push to the US Dollar again and it may continue its bullish movement.
Last week was a volatile week for Euro where the currency lost its ground in the starting of the month due to the positive performance of US Dollar but found support near the level of 1.19 and ended the week with bearish sentiments.
This week is also expected to be a tough week for Euro as in the absence of any major economic event this week the majority of the movement will derive from the movement of U.S Dollar which can keep the movement of the pair in a tight range.
EUR/USD 1H chart
Technical outlook: On the technical ground, the EUR/USD pair is trading sideways between the short term Support and Resistance zone near 1.1900 and 1.2000 respectively.
In short term, the EUR/USD pair is showing signals of a potential bearish movement which can push the price to test the support zone near 1.1900 levels. A beak of this support can lead to a deeper correction which can push the price near 1.1750 levels.
The pair USD/JPY had given a sharp corrective turn and majorly traded with bearish sentiments and settled off all the gains made in the starting of the week. The Japanese yen was the strongest against the U.S. dollar last week after as the demand of the safe haven currency was spiked due to the comment made by Iran’s foreign minister Mohammad Jawed Zarif over the nuclear deal had initiated a worrying wave in the markets.
USD/JPY 4H chart
Technical outlook: On the technical ground the USD/JPY pair is trading at a very crucial level and if it continues to fall and break the short term support zone near 108.50 levels this week then it can reach near to the level of 106.70 in coming future.
The pair was amongst the worst performer last week with a continues bearish movement the pair had closed the last week with bearish sentiments and it is expected to continue its bearish movement in coming future as well on the back of the stress over the Brexit matter which can keep the market under pressure in near term.
GBP/USD 4H chart
The short-term downtrend in the GBP is still on the move and the pair can test the support zone if 1.3200 levels in near term. the break of this support can result in a deeper correction in the GBP/USD pair as the Pound is still not strong and the overall sentiments for the pair are still negative on the back of the Political concerns and the start of the Brexit final negotiation which can put bearish pressure on the pair.