{"id":35490,"date":"2013-06-23T17:22:17","date_gmt":"2013-06-23T21:22:17","guid":{"rendered":"http:\/\/countingpips.com\/?p=35490"},"modified":"2013-06-23T17:22:17","modified_gmt":"2013-06-23T21:22:17","slug":"us-dollar-surged-last-week-vs-major-currencies-on-fed-outlook","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2013\/06\/23\/us-dollar-surged-last-week-vs-major-currencies-on-fed-outlook\/","title":{"rendered":"US Dollar surged last week vs major currencies on Fed Outlook"},"content":{"rendered":"

By CountingPips.com<\/strong><\/p>\n

The US dollar surged against the other major currencies in forex trading<\/a> action last week as Federal Reserve Chairman Ben Bernanke’s comments and outlook rocked the financial markets. Mr. Bernanke said the US Fed bond-buying program could possibly be scaled back in 2013 and likely to wrap up in 2014 if growth, employment and inflation data all continue to improve. The end of this program is seen as US dollar positive and helped the US dollar gain ground against all the other major currencies last week.<\/p>\n

Looking forward to this week, the question will be whether last week’s US dollar strength will extend into this week and, perhaps, beyond.<\/p>\n

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Major Currency Pair Commentary:<\/strong><\/p>\n

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EUR\/USD: <\/strong>The euro fell against the US dollar for the first time in five weeks and dropped below the 1.3200 trading level last week. Looking forward to this week, it will be interesting to see whether follow through lower will see the EUR\/USD back at the 1.3000 major support level. Further decline should test the 1.3100 level before we can have a go at the 1.3000 major support while upward momentum will likely run into the 1.3150 area of resistance before the more important 1.3200 resistance level is tested.
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GBP\/USD:<\/strong> British pound sterling lost ground to the dollar last week for the first time in four weeks and fell back under the 1.5500 price. The GBP\/USD pair currently trades right near the 1.5100 support level which could quickly turn into key support or resistance for the week. A rebound in the GBP this week could see resistance into the 1.5600 area while further decline will likely test support area of 1.5360 — 1.5350 area and then potentially setting up a test of 1.5250 — 1.5220 area.<\/p>\n

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USD\/JPY:<\/strong> The dollar jumped back against the the Japanese yen last week after a few weeks of sharp declines and large volatility. The USD\/JPY closed over the 97.50 level to end the week and sets up a potential reunion with the major 100.00 level this week. Look for support areas at the 97.50 level with the 96.50 — 96.65 area looming as support below. Potential overhead resistance areas include 98.00 — 90.20 level and then the round number of the 99.00 level before the major 100.00. A breakout above this level would be a major bullish signal.<\/p>\n

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USD\/CHF:<\/strong> The dollar rebounded against the franc last week after falling for four consecutive weeks. The USD\/CHF currency pair trades right below the 0.9350 level currently. This level looks to be an important barometer early in the week as a breakout above this level will likely see further upward momentum for the US dollar. More bullish momentum for this pair will likely run into resistance at 0.9430 — 0.9450 and and then into the major 0.9500 level. Lower level support this week will come in at the 0.9250 level followed by the 0.9180 — 0.9200 area which provided a strong base for prices last week.<\/p>\n

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USD\/CAD:<\/strong> The dollar surged higher last week against the Canadian dollar after two weeks of declines. The USD\/CAD is poised to make a run at 1.0500 and whether we will finally see a sustained breakout of this currency pair’s wedge pattern to the topside. Upward momentum resistance is the major 1.0500 level while support below can be found at 1.0400 — 1.0420 area before the 1.0325 — 1.0300 area of previous support resistance comes into play.<\/p>\n

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AUD\/USD:<\/strong> The Australian dollar continued its decline last week after a pause the previous week. The AUD\/USD currently trades around the 0.9250 level for the first time since 2010. This pair looks poised to test the major 0.9000 level which could provide a base of support for this streaking downtrend. Any upward momentum may be capped into the previous resistance level of 0.9350 — 0.9365.<\/p>\n

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NZD\/USD:<\/strong> The New Zealand dollar also turned lower last week and trades right near the 0.7750 level which marks its lowest trading level in about a year. Overhead resistance for this pair comes in at 0.7815 — 0.7800 area. First line of support looks to be had at 0.7700 area and then the 0.7650 area before potential major support at the 0.7500 level.<\/p>\n

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This Week\u2019s Economic Calendar highlights:<\/strong><\/p>\n

Tuesday, June 25<\/strong><\/p>\n

United States — durable goods report
\nUnited States — consumer confidence report
\nUnited States — new home sales<\/p>\n

Wednesday, June 26<\/strong><\/p>\n

United Kingdom — Bank of England financial report
\nUnited States — GDP report
\nUnited States — personal consumption expenditure
\nNew Zealand — trade balance<\/p>\n

Thursday, June 27<\/strong><\/p>\n

Euro zone — Germany employment report
\nJapan — national consumer price index
\nUnited Kingdom — GDP report
\neuro zone — consumer confidence
\nUnited States — weekly jobless claims
\nUnited States — pending home sales<\/p>\n

Friday, June 28<\/strong><\/p>\n

Euro zone — Germany consumer price index
\nCanada — GDP report
\nUnited States — University of Michigan survey<\/p>\n

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Written by Zac Storella, CountingPips<\/a> Forex Blog & Currency Pair Technical Analysis<\/p>\n","protected":false},"excerpt":{"rendered":"

By CountingPips.com The US dollar surged against the other major currencies in forex trading action last week as Federal Reserve Chairman Ben Bernanke’s comments and outlook rocked the financial markets. Mr. Bernanke said the US Fed bond-buying program could possibly be scaled back in 2013 and likely to wrap up in 2014 if growth, employment … <\/p>\n

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