The week roundup

By admin In Uncategorized On February 12, 2018

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With the first full week of February in the rear view mirror, we can see that the US equity markets have so far been dominating a major portion of the attention! Concerns that faster-than-expected inflation will lead to more rate hikes this year sparked a 5% decline!

Amid last week’s risk aversion the US dollar clearly benefited, rallying to highs of 90.57 and increasing its overall value by 1.27%. The currency is showing real promise above monthly support pegged at 88.50 (see US dollar index).

The euro, on the other hand, suffered on the back of mixed messages from ECB members and a stronger dollar. The British pound, although attempted to gain ground on Thursday amid a hawkish stance from the BoE, similarly ended the week in the red, largely due to dollar strength. The Australian dollar also maintained a bearish presence last week. The RBA left interest rates unchanged – released disappointing retail sales and trade balance figures, and likewise suffered at the hands of a more buoyant dollar.

Technical Trading Levels:

EUR/USD

Supports: 1.2195; H4 trendline support; 1.22 handle; 1.2215; 1.2246-1.2164; 1.2070; 1.2044; 1.2004.

Resistances: 1.2569-1.2287; 1.2359; 1.2250.

 

USD/CAD

Supports: 1.2545-1.2566; 1.2489-1.2536; 1.2355.

Resistances: 1.2669-1.2632; 1.2664; 1.2579.

 

USD/JPY

Supports: 107.92/108.14; 108.50; 108.26; weekly trendline support; 105.19-107.54.

Resistances: 109 handle; 109.19; 110.21.

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