• FxWirePro: currency market weekly outlook

    Source: FxWire Pro - Technicals / 07 Oct 2019 03:47:04   America/New_York

    Previous Week


    US dollar was trading extremely weak previous week and lost more than 100 pips from high of 99.67. The decline was mainly due to worst US economic data especially US ISM manufacturing PMI. It is currently trading around 98.87.


    The ISM manufacturing PMI came at 47.1% lowest level since 2009 and services PMI dropped to 52.6 well below expectations of 55. US economy has added 136000 jobs in Sep and the unemployment rate around 3.5%.


    The precious metal recovers more than $50 from the low of $1458 on economic slowdown and US-EU trade war and is hovering around $1506.


    The Brent crude oil prices are trading lower for 3rd consecutive week and lost more than 19% from the high of $69.64. It is currently trading around $58.32.


    US 10 year bond yield lost more than 20% and is currently trading at 1.518%. The yield curve inversion between US 10 year and 2-year has gone and spread widened to 12 bps from 2 bps.


    Weekly Technical:




    Major trend reversal level- 1.1000


    Near term support- 1.0900/1.0830


    Near term resistance – 1.1000/1.1030




    Major trend reversal level- 108.50


    Near term support- 106.40/105.80


    Near term resistance – 107.40/108




    Major trend reversal level- 1.0030


    Near term support- 0.9900/0.97700


    Near term resistance – 1.0030/10060




    Major trend reversal level- 1.3380


    Near term support- 1.3180/1.3135


    Near term resistance – 1.3300/1.3380




    Major trend reversal level- $1460


    Near term support- $1480/$1460


    Near term resistance – $1525/$1555


    WTI Crude


    Major trend reversal level- $57


    Near term support- $50/$46


    Near term resistance – $54/$57


    Major Economic events for the week


    Fed Chair Powell Speaks - Monday (17:00 GMT)


    US CPI m/m   - Tuesday (12:30 PM GMT)


    Canada employment Change - Friday (12:30 GMT)

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