Dollar Index Hit Two-Decade High as Focus Turns to Fed Hike
Action Insight Weekly Report 4-30-22
Dollar Index Hit Two-Decade High as Focus Turns to Fed Hike

Speculations on aggressive Fed Dollar ended up as the strongest one last week, having the best week since 2015 and with Dollar index hitting a two-decade high. Though, the rally somewhat slowed towards the end of the week. It could be a result of month end flow or traders' cautiousness ahead of Fed. But in any case, there is no sign of topping yet. Yen ended as the second strongest, with help from risk-off sentiment and consolidation in treasury yields.

On the other hand, risk aversion and concerns over China hammed Aussie and Kiwi. Euro was not too far away as Russian invasion continued and more sanctions are underway. Sterling and Swiss Franc were also poor performers while Canadian Dollar was mixed.

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EUR/USD Weekly Outlook

EUR/USD's down trend resumed last week and hit as low as 1.0470. As a temporary low was formed, initial bias is neutral this week for some consolidations. Upside of recovery should be limited by 1.0756 support turned resistance to bring fall resumption. Break of 1.0470 will target 161.8% projection of 1.1494 to 1.0805 from 1.1184 at 1.0069.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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