US Dollar Index
This week the US$ index will play a crucial role for the overall market sentiment. Last week the Dollar Index closed with a bearish candle, after showing some strengths in the previous week. Market will wait for the FOMC statement, which is scheduled to announce on coming Wednesday. Any indication of hike of interest rate or reducing the stimulus package might create panic in the market. Technically, the Dollar Index will continue to trade in the range of $89-$92. Any breakout above $92 will open the room for the next target of $95. While any break below $89 can break the almost 6 year low and may go down till its next important support level of $85.

EUR/USD closed the last week with a gain, but failed to recover the loss of the previous week. Market will wait for the ECB President Lagarde speech on Monday, followed by ECB policy on Thursday. EUR/USD is approaching its 2 year high of 1.2350. Medium term outlook for the EUR/USD looks positive. 1.1959 will act as a strong support on a weekly basis, while on the higher side it might attempt to touch 1.24 level.

Cable managed to close the week on a positive note. Rising Covid cases are limiting the GBP/USD on the higher side. It is trading near to 1.37 level since more than a month now. On a weekly basis, all the technical indicators are supporting the bullish momentum. Near term support is at 1.36-1.3580 zone, while on the higher side once its crosses 1.3750-90 level, the upside rally may start till 1.40 level.

The Federal Reserve's interest rate decision will play a crucial role in deciding the trend for Gold this week. Last week, Gold managed to bounce back from $1800 level and closed near to $1854. Major trend is bullish, but now it is almost six months since Gold has been trading in the Ascending channel. Technically, Gold is trading in a consolidation mode since it has hit the resistance level of $1870. On the downside, $1800 is the strong support - if it breaks, the next important level to watch out for will be $1764 and $1732.

US Equity markets
It was a quiet last week for all the major US indices. US500 has been trading sideways for two weeks now. This week Federal reserve's interest policy and ongoing quarterly results by the companies will decide the further trend. Over 100 companies are announcing their quarterly results this week, including some tech giants like Facebook, Netflix, Microsoft and Apple.

Markets are trading near to their all time highs. If the result season goes well, it will hold the bullish momentum. Technically, S&P 500 is facing a resistance near $3880 - if crosses that level it may go up to $3950 and in a very bullish scenario it might attempt for a level of $4000. While on the downside major support is at $3606.

Join over 1 million traders worldwide

Sign up for an account now.


The contents of this article do not constitute trading advice and should be treated as general information only.

Please trade responsibly. For more information about responsible trading please visit:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with