FxWirePro: Currency market weekly Outlook

Previous Week

US dollar was one of the best performers in the previous week on account of ongoing US-China trade war escalation. The US has imposed 15% tariffs on more than $125 bn of Chinese goods including footwear, smartwatches, etc which comes into effect from Sep 1st, 2019 and China retaliated by imposing additional tariffs on $75bn US.   

DXY continues to trade higher for 2 nd consecutive week and jumped more than 150 pips from the previous week low 97.48 and is currently trading around 99.23.

The precious metal is consolidating after hitting a 6-year high. It has shown a minor decline due to profit booking. It hits low of $1517 and is currently trading around $1527.50.

US 10 year bond yield shown a minor recovery of more than 7% after hitting a 3-year high. It is currently trading at 1.51%. The yield curve between US 10 year and 2-year inversion got narrowed by 1 bps from 5 bps.

Weekly Technical:

EURUSD:
 

Major trend reversal level- 1.0930 
 

Near term support- 1.0930/1.0850
 

Near term resistance – 1.100/1.1030

USDJPY:

Major trend reversal level- 106.70 

Near term support- 104.60/103

Near term resistance – 106.70/107.50

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- 1.336
 

Near term support- 1.32490/1.3180
 

Near term resistance – 1.3360/1.3435
 

Gold

Major trend reversal level- $1565

Near term support- $1517/$1490

Near term resistance – $1565/$1600
 

WTI Crude 

Major trend reversal level- $50.50
 

Near term support- $52.95/$50.50
 

Near term resistance – $55.30/$57.20

Major Economic events for the week 

US ISM Manufacturing m/m – Tuesday (2:00 PM GMT)

Canadian Trade balance - Wednesday (12:30 PM GMT)

BOC Rate statement - Wednesday (2:00 PM GMT)

US ADP Non-Farm employment -  Thursday (12:15 PM GMT)

US Non-Farm employment change- Friday (12:30 PM GMT)

Canadian Employment change - Friday (12:30 PM GMT)