Dollar: Weekly Forecast 16th – 20th March 2020

2 things happened as our forecast last week: 1) The dollar broke new low and reach the 17-month demand zone around 952) The dollar pulled back into the supply zone sitting above 97.But what was unexpected was the consecutive gain up to 4 days which caused the dollar to recover more than 75% of the previous bearish trend.It seems that the outbreak of the coronavirus has continued to cause more fear and drove demand for safe-haven assets such as the dollar again.Nevertheless, the dollar is about to face strong resistance from 99 onwards.The Fed is also expected to cut rate by another 0.25%-0.5% in the coming Fed Fund rate decision.Not until the dollar breaks 100, we will keep a bearish stance and look for opportunities to sell the dollar again.

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