Dollar was sold off broadly last week as a 25bps rate hike by Fed in February is now pretty much a done deal, after CPI data. On the other hand, Yen staged a strong rally on speculations that BoJ is now much closer to exit of ultra-loose monetary policy. USD/JPY ended as the biggest mover and more downside is likely ahead. But as argued below, from a medium term long term point of view, a bottom would be formed ahead awhile 120 handle is looking a bit stretched.

In between Dollar and Yen, Swiss Franc was the second worst performer, with upside breakout in EUR/CHF. Canadian Dollar was the third worst. On the other hand, Euro and Sterling were the next strongest one, with help from buying against the Swiss Franc, while Aussie was also strong.

EUR/CHF Weekly Outlook

EUR/CHF's rise from 0.9407 finally resumed by breaking through 0.9953 last week, and hit as high as 1.0095. But as a temporary top was formed with subsequent retreat, initial bias is turned neutral this week first. Downside should be contained by 0.9953 resistance turned support to bring another rally. Break of 1.0095 will resume the rise to 100% projection of 0.9407 to 0.9953 from 0.9720 at 1.0266 next.

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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