FxWirePro: currency market weekly outlook
Source: FxWire Pro - Technicals / 16 Sep 2019 02:36:20 America/New_York
US dollar was one of the worst performers previous week and lost more than 100 pips from high 99.10 especially EURUSD shown a massive recovery of more than 150 pips from bottom 1.09250 despite ECB monetary policy easing. The central bank cuts deposit rates by 10bps to -0.50% and introduced a bond purchase program by 20bn euros. But markets expect an aggressive move from ECB which has supported Euro at lower levels. US dollar index hits a low of 98.03 and is currently trading around 98.14.
US CPI came at 1.7% y/y compared to forecast of 1.8% y/y and retail sales rose 0.4% m/m compared to decline -0.8% previous month and the jump was mainly due to spike in auto sales.
The precious metal is consolidating in a narrow range between $1480 and $1528 for the past two weeks. The slight easing of US-China trade tension and jump in bond yield is putting pressure on yellow metal at higher levels. It is currently trading around $1506.
The Brent crude oil prices exploded nearly 20% for the first time since 28 years after an attack on Saudi Arabia's Aramco facility. It has halted more than 50% of Saudi oil exports and 5% of the world's daily production.
US 10 year bond yield shown a good recovery of more than 30% after hitting a 3-year low of 1.44%. It is currently trading at 1.898%. The yield curve inversion between US 10 year and 2-year has gone and spread widened to 8 bps.
Major trend reversal level- 1.1125
Near term support- 1.1050/1.100
Near term resistance – 1.1125/1.11750
Major trend reversal level- 108.35
Near term support- 107.20/106.60
Near term resistance – 108.35/109.30
Major trend reversal level- 0.9955
Near term support- 0.9850/0.9770
Near term resistance – 0.9955/1.000
Major trend reversal level- 1.3380
Near term support- 1.3300/1.3380
Near term resistance – 1.3180/1.3135
Major trend reversal level- $1480
Near term support- $1480/$1460
Near term resistance – $1525/$1555
Major trend reversal level- $63.50
Near term support- $58.10/$56.08
Near term resistance – $60.50/$63.50
Major Economic events for the week
Fed policy meeting - Wednesday (6 PM GMT)
Canadian CPI - Wednesday (12:30 PM GMT)
Swiss National Bank Monetary policy assessment -Thursday (11 AM GMT)© FxWire Pro 2019. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.