It pays to know where you are in the bigger picture.
This article is originally referred from IC Markets News.
US President Trump met with European Commission President Juncker in the Oval Office of the White House on Wednesday, resulting in both sides agreeing to work together to lower trade barriers and eliminate some tariffs.
The positivity aired from this meet temporarily boosted risk sentiment.
The USD (in terms of the DXY) ended the week eking out a marginal gain of 0.20%.
Arguably one of the biggest G10/major losers on the week was the euro (-0.53%), largely due to clarification from ECB President Draghi that market pricing for a rate hike in September/October next year is in line with guidance.
However, the technicals show EUR/USD weekly price confined to a tight range comprised of a resistance area plotted at 1.1717-1.1862 and a trend line support (etched from the low 1.0340).
This is interesting since we’re also seeing bearish pressure come in from the weekly picture on the USD/CHF off the 2016 yearly opening level at 1.0029. Remain aware of this inverse correlation, traders.
USD/JPY managed to print its second consecutive losing week. Intraday traders looking to short this momentum, however, should remain conscious of where we’re bouncing from on the weekly timeframe: trend line resistance-turned support (taken from the high 123.57).
USD/CAD also traded lower for a second week, prompting a marginal close beneath weekly support at 1.3086.
Looking ahead, the Fed and NFP dominate the agenda this week.
Original Source: IC Markets News