FxWirePro: Currency Weekly Outlook

US Dollar index was trading higher in the previous week and jumped more than 100 pips. The US-China trade optimism has pushed US stocks, treasury yield, and the dollar higher. The two countries have agreed to roll back tariffs in phases. The index hits a high of 97.40 and is currently trading around 97.32.

On the data front, US ISM services data came at 54.7 much better than expected compared to forecast of 53.5 and far ahead of 52.5 in Sep. Markets eye US CPI, core retail sales and Fed Powell testimony.

The Canadian economy unexpectedly lost 1800 jobs in Oct compared to a forecast of 14300, decline since Jul 2019.

The yellow metals were one of the worst performers and lost more than $50 on easing US-China trade tension. Any break below $1456 confirms bearish continuation.

US 10-year yield is trading Higher and jumped more than 15% to 1.97%. The spread between US 10-year and 2-year has widened to 26 bps.

Weekly Technical:

EURUSD:

Major trend reversal level- 1.1178

Near term support- 1.100/1.0935

Near term resistance – 1.1060/1.1100

USDJPY:

Major trend reversal level- 109.50

Near term support- 108.60/107.80

Near term resistance – 109.50/110.60

USDCHF

Major trend reversal level- 1.0030

Near term support- 0.9900/0.97700

Near term resistance – 1.0030/10060

USDCAD

Major trend reversal level- 1.3385

Near term support- 1.3180/1.310

Near term resistance – 1.3300/1.3385

Gold

Major trend reversal level- $1456

Near term support- $1456/$1430

Near term resistance – $1500/$1525

WTI Crude

Major trend reversal level- $58

Near term support- $55/$52.70

Near term resistance – $58/$60.50

Major Economic events for the week

US CPI- Wednesday (1:30 GMT)

Fed Powell testifies  - Thursday  (3:00 GMT)

US Core retail sales  - Friday (13:30 GMT)