What a week of activity we had last week. From the currency market to the cryptocurrency exchanges, a lot of moves were made which sometimes shocked and even jolted unprepared investors.
A lot of activity occurred on the cryptocurrency scene, where comments from South Korea’s financial minister weighed down Bitcoin and other cryptocurrencies. Furthermore, the sentiment for the US Dollar was bearish throughout the week as a result of the failure of the US Congress to approve a budget to stave off a government shutdown. Chinese GDP data posted a slightly better than expected increase, and the UK saw some mixed data that did nothing to dampen the optimism of the bulls who are pleased with the signals coming out of the Brexit negotiations.
Here are the supply & demand levels for this week
The EUR/USD had a seesaw week. After starting off on a strong bullish note for the first two days of the week, the currency basically kept seesawing within a tight band of 1.2160 and 1.2300, before ending the week basically where it started.
There are some things which are happening in the US economic and political space which are not sending good vibes for the US Dollar. There is the threat of an imminent shutdown of the US government. The NAFTA negotiations are clouded with a lot of uncertainty, and despite all the expectation of further rate hikes, there is a general pessimism towards the US Dollar in the markets. The US Dollar Index has taken out its immediate support and is in a short-term downtrend. The outlook for the EURUSD is mildly bullish.
EUR/USD Daily Supply & Demand zones:
EUR/USD 4H Supply & Demand zones:
EUR/USD 1H Supply & Demand zones: