Down from a peak of 96.16, 4 points north of the prior week’s high, the US dollar explored one-way trade last week, concluding the session at -0.46% (DXY).

Disappointing US inflation numbers and US President Trump reiterating his dismay for the FOMC, collectively weighed on the greenback.

Technical analysts may want to acknowledge the US dollar index remains trading around the top edge of monthly supply at 95.13-92.75.

US equities also face some real concerns at the moment. Rising interest rates, trade conflict with China and anxieties regarding an ageing bull market saw the Dow Jones Industrial Average and the S&P 500 decline more than 4% in recent trade.

The British pound sported a reasonably positive week, though through a modest resurgence of USD longs, along with renewed Brexit uncertainty, the pair trimmed gains on Friday, wrapping up the week at +0.26%.

Although optimism surrounding the possibility of a Brexit deal being achieved ahead of the final divorce date remains high, the European Commission stated on Thursday ‘we are not there yet’, stressing there has been no breakthrough in negotiations.

The safe-haven Japanese yen firmly advanced against its US counterpart last week amid global trade rifts, pulling the USD/JPY market beneath its 2018 yearly opening level at 112.65.

Technical daily support resides at 112.11 and brings together an assortment of notable supports: a Fibonacci cluster and a cloned trend line support (taken from the low 109.77).

A defensive play from this region, therefore, may be in the offing this week.

For a more in-depth look at the technical picture, feel free to check out IC Markets’ comprehensive weekly report.