The U.S. Dollar Index mostly traded sideways in the last week where it started the week on a negative note and continued the week with mixed emotions but it manages to give a positive ending of the week by gaining 0.42 points in the last trading session of the week and closed the week on a flat note.
This week is going to be a very important week for the Dollar Index as it will decide whether the U.S. dollar will head back up again or it will continue its short-term bearish movement in coming future as well.
On the technical grounds, the Greenback is showing signals of a potential bullish movement in coming future if it manages to cross the short term resistance zone near 95.50 levels in the coming week. we expect the coming week to be a highly volatile week for the U.S. Dollar Index and if the Index will cross the resistance zone of 95.50 in coming trading sessions then it may again turn bullish and give a positive start of this month, however, the movement in the U.S. Dollar Index largely depends on the developments in the blooming trade war situation.
Last week was a volatile week for Euro where the currency gained some points in the starting of the week due to the negative movement of US Dollar but faced resistance near the 1.1710 levels and dropped in the last two trading sessions by setting off all the gain it made in the starting of the week and gave a flat closing of the week.
The upcoming week is also expected to be a tough week for Euro as in the absence of any important economic reports or speech from euro front it is expected to be a heavy push and pull between bulls and bears which may result in yet another flat week ahead.
Technical outlook: On the technical ground the EUR/USD pair is giving signals of a potential bearish movement in this pair and it is expected to test the support zone near the level of 1.1500 in near term. If the EUR/USD pair crosses the short term support zone of 1.1500 in the starting for the week, then it may result in a deep fall in this pair which can give the control of this pair to bears again.
On the economic front, The Japanese yen is expected to give a volatile start of this week as there is a speech of BOJ governor Kuroda due on the very first day of this week which have the power to decide the direction of this pair which can continue to dominate the movement in this pair throughout the week. This speech is a major event where investors keep an eye on this event which has to potential to give a meaning full movement in this pair in near term.
On technical ground the pair is trading with negative sentiments created by the trade war between China and the U.S. and this bearish movement is still intact as the weekly and daily candles are clearly showing the rejection of 112.00 levels and this can result in a fall which can lead the pair near to the level of 109.80 in near term.
However, if the bearish movement of US Dollar will continue in the coming week then we can expect a sideways movement in this pair in the coming week.
The pair had managed to give bullish movement in last two weeks but the downtrend in the pair which can clearly visible on the weekly chart is still intact which is expected to kick in this week. The downtrend in the GBP is still on the move and it is expected that the pair which had experienced resistance near the zone of 1.3000 levels can give a negative movement this week and again start falling in near term as the Pound is still not getting any positive push which is keeping the overall sentiments for this pair negative.
On economic front there aren’t any positive developments in the Brexit negotiations which are continuing to put bearish pressure in this pair and the bulls are still sitting on the bench and waiting for a positive outcome to jump back again in the market and it this pair some relief from the recent drop.