Forex Forecast: Pairs In Focus - Sunday, April 25

U.S. Dollar Index

The weekly price chart below shows the U.S. Dollar Index printed a firmly bearish candlestick last week after rejecting the key resistance level a few weeks ago shown above the current price in the chart below and making a bearish reversal. New lower resistance levels have been printed on the way down, which is a bearish sign. The index is still barely above its price from three months ago, which is a bullish sign, but is further below the key resistance level mentioned as well as sitting below its price from six months ago, suggesting bearish momentum has developed. Overall, next week’s price movement in the U.S. dollar looks slightly likely to be downwards. For this reason, it will probably be wise to not take any long USD trades over the coming week.

US Dollar Index Weekly Chart

S&P 500 Index

The incredible rise of the U.S. stock market since the initial impact of the coronavirus in March 2020 continues, with the price holding its ground last week to briefly trade Friday at another all-time high. This was really a pause in the recent strong rise, so bulls will probably do well to be a little careful here and wait for a daily close above 4200 before looking to get long again. Above that level, the price will be in blue sky with bullish momentum, which would suggest the rise would then be likely to continue for some days.

S&P 500 Index Weekly Chart

EUR/USD

Although there is no long-term trend, the weekly chart below shows we have seen relatively powerful bullish momentum over the past three weeks, with the real bodies of these candlesticks larger than we have seen for several months. We can therefore say there is a bullish medium-term trend which may continue to at least the resistance level at 1.2227 which caps the recent inflective long-term high price above.

EUR/USD Weekly Chart

USD/JPY

Although there is no long-term trend, the weekly chart below shows we have seen relatively powerful bearish momentum over the past three weeks, with a clear bearish inflection point having impact from the psychologically important 110.00 area. We can therefore say there is a bearish medium-term trend which may continue to at least the support level at 106.67 shown as a likely key level in the price chart below.

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