Yen Staying Bearish after a Wild Ride; Dollar Index Presses Key Resistance
| Action Insight Weekly Report 7-29-23 |
| Yen Staying Bearish after a Wild Ride; Dollar Index Presses Key Resistance |
The global financial markets found themselves in a flurry of volatility in the past week, underpinned by policy decision of three major central banks in North American, Europe, and Asia. Yen and Nikkei had the wildest roller-coaster ride in reaction to BoJ's tweak to their Yield Curve Control. In the end, Yen crosses are maintaining their bullish trends, together with Nikkei. Meanwhile, the western hemisphere saw a divergence in currency trends following expected monetary policy decisions from Fed and ECB. That resulted in extended rally in Dollar index which is now pressing a key resistance level, with future trends hinging on market reactions at this juncture. Overall, while Yen was the best performer of the week, it's near outlook looks shaky. Dollar followed as the second best, and then Sterling. Australian Dollar was the worst performer, followed by Euro, and then Swiss Franc. Canadian and new Zealand Dollar ended mixed. |
EUR/USD Weekly Outlook EUR/USD's fall from 1.1274 short term top extended last week and hit as low as 1.0942. Further fall is expected this week as long as 1.1148 resistance holds. Below 1.0942 will target 1.0832 support next. Nevertheless, break of 1.1148 will argue that the decline has completed and bring retest of 1.1274 high. | |
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