Previous Week
US dollar was trading weak in the previous week and lost more than 120 pips from temporary top around 99.37 on account of weak US economic data and easing US-China trade war. US ISM manufacturing index fell to 49.1% in August compared to 51.2% in Jul slightly below 50 which indicates contraction. The Nonfarm payroll came at 130000 slightly less to forecast of 163000 and unemployment rate steady at 3.7%. DXY hits a low of 98.01 and is currently trading around 98.42. But positive comments from Powell on US economic growth supported the US dollar index at lower levels.
Canadian dollar performed well against all majors on slightly hawkish BOC and better than expected employment data.
The precious metal has lost more than $50 previous week after hitting a 6-year high. It has shown a minor decline in US-China trade optimism and a slight recovery in bond yield. It hits low of $1503 and is currently trading around $1509.73.
US 10 year bond yield shown a minor recovery of more than 13% after hitting a 3-year low. It is currently trading at 1.536%. The yield curve inversion between US 10 year and 2-year has gone and spread narrowed to 3 bps.
Weekly Technical:
EURUSD:
Major trend reversal level- 1.10980
Near term support- 1.0930/1.0850
Near term resistance – 1.10980/1.1140
USDJPY:
Major trend reversal level- 107.20
Near term support- 106.20/105.49
Near term resistance – 107.20/108.30
USDCHF
Major trend reversal level- 0.9955
Near term support- 0.9850/0.9770
Near term resistance – 0.9955/1.000
USDCAD
Major trend reversal level- 1.3090
Near term support- 1.31400/1.3090
Near term resistance – 1.3245/1.3300
Gold
Major trend reversal level- $1500
Near term support- $1500/$1478
Near term resistance – $1565/$1600
WTI Crude
Major trend reversal level- $57.50
Near term support- $56.15/$54.80
Near term resistance – $57.50/$60
Major Economic events for the week
ECB policy meeting – Thursday (11:45 AM GMT)
US CPI m/m- Thursday (12:30 PM GMT)
US retail sales m/m - Friday (2:00 PM GMT)


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