Dollar ended as the strongest one last week, with some held from the late selloff in US stocks. Yen was the second strongest on risk aversion while Swiss Franc was not too far away. Commodity currencies, on the other hand, ended generally lower. Traders ignored the dovish tapering of RBA, and the cautiously optimistic BoC. Euro also got no support from ECB's PEPP recalibration.

Risk sentiment would likely continue drive the forex markets in the near term at least. In particular, DOW's selloff on Friday is seen as a technical warning that deeper correction is underway. We'll keep an eye on the development there, and see if DOW would drag other major indexes further down. Or, strength in tech and others could help floor DOW's fall, and thus, cap Dollar and Yen's rebound.

EUR/USD Weekly Outlook

EUR/USD retreated from 1.1908 last week but downside is contained above 1.1792 minor support so far. Initial bias remains neutral this week first. On the upside, sustained break of 1.1907 resitsance will indicate that fall from 1.2265, as well as the consolidation pattern from 1.2348, have completed. Near term outlook will be turned bullish for 1.2265/2348 resistance zone. However, on the downside, break of 1.1792 will retain near term bearishness, and turn bias back to the downside for 1.1663 support instead.

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

The Weekly Bottom Line: Holding the Helm in Stormy Waters

Forward Guidance: Inflation Data to Take Centre Stage

Week Ahead: Timing the Next Taper

Week Ahead: Focus Shifts to Pricing Pressures

Week Ahead – US Inflation Takes Center Stage

Weekly Focus – Fed Tapering Delayed, Not Derailed