With a moderate economic calendar schedule lined-up for the week; with the FED Charles Plosser speaking on monetary policies, UK Consumer and Retail Price Index, jobless claims and the US housing starts figures including existing home sales and again jobless claims would be neutral to friendly for the USD. The market sentiments have weighed-in more for a USD strength continuation after a series of wide price fluctuations from last week. Making the strength of the Euro and Pounds full week of dominating the market more this week's trading.
However, the dominating factor would be how the GBPUSD would react in the market since there are more economic news coming from Europe than the US. So relatively, the USD is susceptible from the market reaction as shown on the opening Asian and European markets earlier.
As a the market is currently moving on its technical axis with the GBPUSD currently at the higher levels at 1.5921 as of this writing. Finding little resistance inspite of a small corrective move on the USDX at the current levels of 79.20. Although, the technical outlook on the chart is more bearish due to the candlestick pattern for the weeklys were engulfing bars of bulls and bears struggling to dominate the market. Price levels above the 78.65 is still a favorable support for the USDX unless any particular news would drive it lower. But for now there is none.
For a complete report on this market outlook ahead for the week of January 22 please refer to our website at http://megatrade101.com/
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