Is the dollar rebound here to stay?

Forex Outlook: Market Movers

Highlights

  •  Market Movers: Weekly Technical Outlook
  •  Is the Dollar Rebound Here to Stay?
  •  Have China and Japan Been Holding Back the Dollar?
  •  Look Ahead: Stocks
  •  Look Ahead: Commodities
  •  Global Data Highlights

 

Market Movers: Weekly Technical Outlook

 

Technical Developments to Watch:

  •       EUR/USD barely holding above key 1.3475-1.3500 support zone
  •       GBP/USD bullish above 1.7040-60 support, but break below would shift bias
  •       USD/JPY testing the bottom of its multi-month range around 101.00
  •       NZD/USD in play, all eyes on RBNZ decision and statement


 

NOTES:

* Bias determined by the relationship between price and various EMAs.  The following hierarchy determines bias (numbers represent how many EMAs the price closed the week above): 0 – Strongly Bearish, 1 – Slightly Bearish, 2 – Neutral, 3 – Slightly Bullish, 4 – Strongly Bullish.

** All data and comments in this report as of approximately 16:00GMT on Friday ** 


EUR/USD

·         EUR/USD drifted to the bottom of its recent 1.35-1.37 range

·         MACD turning lower, but Slow Stochastics oversold

·         Will this be the week strong support in the 1.3475-1.3500 area breaks?

 

The EUR/USD drifted generally lower last week, but stalled out ahead of key previous support in the 1.3475-1.3500 range. The drop was attributed to a perceived hawkish speech by Fed Chair Yellen and general risk-off trading in the wake of a series of geopolitical threats on Thursday. The pair’s MACD shifted lower in the wake of the downdraft, but the Slow Stochastics have now dipped into oversold territory, raising the probability of a bounce this week. The latest developments out of Ukraine, Russia, and the Middle East will be critical this week; if we see the safe haven bid for the greenback strengthen, the EUR/USD could break below key support in the 1.3475-1.3500 zone.


 

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