The US dollar remained soft during the last week. And also during Asian session. Regardless Powell’s speech, and his defending of the Fed’s current policy to raise interest rates ignoring president Trump’s recent criticism, US dollar remained soft. After Powell’s movements there should be expected a more hawkish signal. We could see the US dollar weakening.
EUR/USD rose on last week testing the 1.1623 resistance line, now turned to support and broke it (during the Asian session). The pair seems to be struggling with the prementioned support line and the upward trend line. We could see it reaching out for the 1.1675 resistance line and even breaching it. On the other side, we could see the pair breaking the 1.1623 support line and aim if not breach the 1.1537 support level.
The first “set of advice” for businesses in the case of hard Brexit were published yesterday! They were published by UK Brexit secretary Dominik Raab. The “set of advice” contain notes for more red tape for UK businesses and higher prices. Also, imply that many of the problems created by a no deal Brexit may be beyond the UK government’s powers to fix. Warning that leaving without a deal would have “large fiscal consequences” was also repeated by Chancellor of the Ex-Chequers Philip Hammond.
GBP/USD dropped breaking 1.2825 support line. The pair may prove sensitive to Fed’s Chairman Powell’s speech today. We could see it breaking the 1.2770 support line and aim for the 1.2725 support level. On the other side, we could see it breaking the 1.2825 resistance line and aim for the 1.2895 resistance hurdle.