Fed's Powell to Testify
FOMC minutes released on Wednesday gave Dollar the much required support as minutes were interpreted to be hawkish. Gold that had another go at $1351 failed again to close down at $1328 after finding support at $1319, where the rising trend line sits.
EURUSD too was weak after failing to settle above 1.2500. Multiple failure above 1.2500 has now bought sellers in control as EURUSD lost more than 130 pips last week to end at 1.2284. Economic data’s from Europe was mixed failing to prop up EUR.
GBPUSD was under pressure throughout the week on the back of disappointing jobs data and rising discord among supporters in PM may’s camp. GBPUSD ended the week at 1.3964.
USDJPY was supported by hawkish minutes and some shorts unwinding as it managed to climb to 107.80 where the falling trend line resistance proved too strong for the bulls to break. USDJPY eventually gave up most of the gains as it marginally closed higher for the week at 106.82.
USDCAD benefitted from a strong dollar and nervous Canadian dollar as it traded up and briefly broke the 1.2660 resistance to make a week high of 1.2758. Friday’s inflation reading provided Canadian dollar some support as USDCAD traded lower to close at 1.2625.
Coming week would see Powell testifying, being his first, his take on the current equity market rally and inflation reading would be of great importance.
Gold should find support at $1325 where the rising trend line support now lies. Another go at $1351 should be expected as long as the support is held.
EURUSD looks weak on the charts and test of 1.22 looks on the Card. The broader bullish picture remains strong as long as 1.22 is held. Next week is light on crucial EU economic data releases.
GBPUSD is stuck in a wedge formation with support and resistance lying at 1.3900 and 1.4050. Friday would be crucial for GBP as we see both Pm may and BOE’s carney speaking. Updates on Brexit too need to be watched.
USDCAD looks bullish after it broke the resistance at 1.2660. Friday sees Canadian GDP getting released and news bits about NAFTA negotiation too needs to watch out for.
