Currency market weekly Outlook:

Previous Week

US dollar was trading strong against all majors especially against Euro on better than expected US retail sales and Philly Fed Manufacturing index.

DXY has jumped more than 100 pips from the previous week close 97.03 and closed at 98.20.

The precious metal was consolidating in a previous week especially Gold within a narrow range between $1479 and $1534 on declining US 10- year bond yield.

US 10 year bond yield continues to trade lower and lost more than 15% from the previous week close of 1.75%. It has closed at 1.55%. The spread between US 10 year and 2 year has narrowed to 5 bps from 10 bps and between US 3month and 10 year is still inverted.

Weekly Technical:

EURUSD:

Major trend reversal level- 1.12860

Near term support- 1.10250/1.09600

Near term resistance – 1.1160, 1.12300

USDJPY:

Major trend reversal level- 107.20

Near term support- 104.60/103

Near term resistance – 107.20/108

USDCHF

Major trend reversal level- 0.9660

Near term support- 0.9750/0.9690

Near term resistance – 0.9820/0.9900

USDCAD

Major trend reversal level- 1.335

Near term support- 1.3260/1.3180

Near term resistance – 1.3350/1.3435

Gold

Major trend reversal level- $1480

Near term support- $1480/$1450

Near term resistance – $1535/$1570

WTI Crude

Major trend reversal level- $50.50

Near term support- $53.50/$52

Near term resistance – $55.65/$56.60.

Major Economic events for the week

US FOMC Meeting Minutes – Wednesday (6:00 PM GMT)

Canadian CPI m/m - Wednesday (12:30 PM GMT)

German Flash Manufacturing and services PMI - Thursday (7:15 AM GMT)

Canadian retail sales m/m- Friday (12:30 PM GMT)

Fed Chair Powell Speaks Friday (2:00 PM GMT)