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Market Outlook
US dollar set for biggest weekly loss as bulls pull out. - Zeal Capital Market

US dollar set for biggest weekly loss as bulls pull out.

27-05-2022 08:26

“Demand for greenback dwindles as Fed mulls to pause rate hike.”

Greenback is expected to record its biggest lost in four months as traders lower their expectation towards aggressive interest rate hike from Federal Reserve. Recently, meeting minutes from Fed signalled for a possible pause in rate hikes as they would like to monitor policy adjustment’s impact upon US economy. The latest signal from Fed dealt a significant blow on market participants as they speculated for more rate hikes throughout the year.

Quick recap on GBPUSD

GBPUSD recouped its losses after staging a rebound near 1.2191.

GBPUSD Weekly Technical Analysis

US dollar set for biggest weekly loss as bulls pull out. - Zeal Capital Market

In terms of weekly chart, the pair is currently testing near 1.2636, its latest hurdle that could unlock further upside opportunities.

GBPUSD Daily Technical Analysis

US dollar set for biggest weekly loss as bulls pull out. - Zeal Capital Market

While weekly chart looks promising, overall upside momentum on the daily chart is still lacking.

Trading Idea

US dollar set for biggest weekly loss as bulls pull out. - Zeal Capital Market

ORDER: BUY STOP

ENTRY: 1.2680

STOP LOSS: 1.2470

Target 1: 1.2900

Target 2: 1.2990

ZFX Analyst’s Comment

While the pair is slacking for the time being, it has the potential to appreciate further if the hurdle around 1.2638 is being resolved. Thus, we would wait for a confirmatory close above the level before entering the market.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

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