FxWirePro: Currency Market Weekly Outlook

Previous Week

US dollar was trading extremely weak previous week and lost more than 100 pips from high of 99.67. The decline was mainly due to worst US economic data especially US ISM manufacturing PMI. It is currently trading around 98.87.

The ISM manufacturing PMI came at 47.1% lowest level since 2009 and services PMI dropped to 52.6 well below expectations of 55. US economy has added 136000 jobs in Sep and the unemployment rate around 3.5%.

The precious metal recovers more than $50 from the low of $1458 on economic slowdown and US-EU trade war and is hovering around $1506.

The Brent crude oil prices are trading lower for 3rd consecutive week and lost more than 19% from the high of $69.64. It is currently trading around $58.32.

US 10 year bond yield lost more than 20% and is currently trading at 1.518%. The yield curve inversion between US 10 year and 2-year has gone and spread widened to 12 bps from 2 bps.

Weekly Technical:

EURUSD:

Major trend reversal level- 1.1000

Near term support- 1.0900/1.0830

Near term resistance – 1.1000/1.1030

USDJPY:

Major trend reversal level- 108.50

Near term support- 106.40/105.80

Near term resistance – 107.40/108

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- 1.3380

Near term support- 1.3180/1.3135

Near term resistance – 1.3300/1.3380

Gold

Major trend reversal level- $1460

Near term support- $1480/$1460

Near term resistance – $1525/$1555

WTI Crude

Major trend reversal level- $57

Near term support- $50/$46

Near term resistance – $54/$57

Major Economic events for the week

Fed Chair Powell Speaks - Monday (17:00 GMT)

US CPI m/m   - Tuesday (12:30 PM GMT)

Canada employment Change - Friday (12:30 GMT)