Currency market weekly Outlook:

Previous Week

US dollar was trading weak against all majors especially against Japanese Yen due to the escalation of the US-China trade war.

DXY has declined more than 100 pips from the previous week close 98.10 and closed at 97.03.

The major economic data from the US was US ISM Services which came slightly weaker than expected.

The precious metal was the best performer in a previous week especially Gold jumped more than $70 on declining US 10- year bond yield.

US 10 year bond yield continues to trade lower and lost more than 12% from the previous week close of 1.83%. It has closed at 1.75%. The spread between US 10 years and 2 years has narrowed to 10 bps from 12 bps and between US 3month and 10 years has widened to 25 bps to 23 bps.

Weekly Technical:

EURUSD:

Major trend reversal level- 1.12860

Near term support- 1.11600/1.1100

Near term resistance – 1.1250, 1.12650

USDJPY:

Major trend reversal level- 107.20

Near term support- 105.25/104.60

Near term resistance – 106.30/107.20

USDCHF

Major trend reversal level- 0.96900

Near term support- 0.96900/0.9635

Near term resistance – 0.9800/0.9865

USDCAD

Major trend reversal level- 1.3190

Near term support- 1.3190/1.31418

Near term resistance – 1.3265/1.3345

Gold

Major trend reversal level- $1480

Near term support- $1480/$1450

Near term resistance – $1520/$1540

WTI Crude

Major trend reversal level- $50.50

Near term support- $53.25/$52.24

Near term resistance – $55/$56.03.

Major Economic events for the week

German ZEW economic – Tuesday (9:00 GMT)

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

UK CPI y/y –Wed (8:30 GMT)

US retail sales m/m –Wed (12:30 GMT)