Previous Week
- US dollar was trading weak against all majors especially against Japanese Yen due to escalation of US-China trade war.
- DXY has declined more than 100 pips from previous week close 98.10 and closed at 97.03.
- The major economic data from US was US ISM Services which came slightly weaker than expected.
- Precious metal was best performer in 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 previous week close of 1.83%. It has closed at 1.75%. The spread between US 10 year and 2 year has narrowed to 10 bps from 12 bps and between US 3month and 10 year 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)
