Weekly Technical Outlook and Review (18-22 December 2017)
With another week in the rear view mirror, the US dollar managed to register its third consecutive gain last week, albeit only 0.03%. The Federal Reserve, as expected, increased the benchmark interest rate but failed to spark much dollar buying. The dissent of Fed member’s Evans and Charles clearly weighed on the dollar. The currency recovered, however, thanks to hopes that the tax bill will pass and better-than-expected US retail sales.
Also in the spotlight last week were the Bank of England and the Swiss National Bank, both leaving monetary policies unchanged. ‘Brexit’ negotiations are now entering into the second phase, but are somewhat overshadowed by uncertainties surrounding the trade deal. The euro failed to advance despite an earnest attempt from the bulls. The Australian dollar enjoyed a successful week of buying, advancing nearly 2.00%. Robust gains in commodities and Australia’s firm employment growth were the main catalysts behind the move.
As we enter into the last week before the Christmas holidays, let’s see what the charts have in store...