Previous Week
US dollar was trading extremely strong in the previous week and jumped more than 100 pips from low of 98.36. The jump was due to broad-based US dollar buying. It hits a high of 99.31 and is currently trading around 99.17.
US economy has grown slowly in the second quarter at 2% annual pace from Apr to June compared to 3.1% previous quarter and CB consumer confidence came at 125.1 in Sep lowest level in 3 months from 135. US durable goods rose 0.2% better than -1.2% in the previous month.
The precious metal continues to trade in a narrow range between $1530 -$1480 and any major weakness can be seen only below $1480.It is currently trading around $1493.
The Brent crude oil prices are trading lower for 2nd consecutive days and lost more than 13% from the high of $69. It is currently trading around $60.95.
US 10 year bond yield has halted its bullish trend at 1.907% and lost nearly 14% and is currently trading at 1.682%. The yield curve inversion between US 10 year and 2-year has gone and spread widened to 4.4 bps from 2 bps.
Weekly Technical:
EURUSD:
Major trend reversal level- 1.10905
Near term support- 1.0900/1.0830
Near term resistance – 1.0965/1.1030
USDJPY:
Major trend reversal level- 108.50
Near term support- 107.40/106.60
Near term resistance – 108.50/109.30
USDCHF
Major trend reversal level- 0.9980
Near term support- 0.9850/0.9770
Near term resistance – 0.99525/0.9980
USDCAD
Major trend reversal level- 1.3380
Near term support- 1.3180/1.3135
Near term resistance – 1.3300/1.3380
Gold
Major trend reversal level- $1480
Near term support- $1480/$1460
Near term resistance – $1525/$1555
WTI Crude
Major trend reversal level- $63.50
Near term support- $54.70/$52.80
Near term resistance – $57.05/$60.50
Major Economic events for the week
US ISM PMI - Tuesday (14:00 GMT)
Canada GDP - Tuesday (12:30 PM GMT)
US ADP Non-farm employment Change - Wednesday (12:15 GMT)
US ISM Non-manufacturing PMI - Wednesday (2 PM GMT)
Canada Trade Balance - Friday (12:30 PM GMT)
US Non-Farm PayrolL - Friday (12:30 PM GMT)


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