Global Market Snapshot 17th March 2025

Last week, U.S. stocks experienced a sharp decline, with the Dow Jones Industrial Average plunging by 3.1%, marking its worst weekly performance since March 2023. Similarly, both the S&P 500 and Nasdaq indices fell by more than 2%, extending a four-week losing streak.

Although a strong rebound on Friday momentarily lifted market sentiment, it was not enough to reverse the overall downtrend. Despite the increased risk-averse sentiment in U.S. equities, currency markets remained relatively stable, showing consolidation rather than significant volatility.

The U.S. dollar, after a period of selling pressure, showed a mild recovery, though this rebound has yet to demonstrate a strong bullish reversal. The ongoing escalation of trade tensions has significantly impacted U.S. consumer and business confidence, contributing to an overall fragile market sentiment.

However, as both U.S. stocks and the dollar approach oversold levels, the market seems to have found a temporary stabilization point, offering a short-term breather from recent sell-offs.

Weekly Forex Market Forecast

EUR/USD (Euro / US Dollar)

• Last week’s performance: The pair saw a modest rise before retracing.
• Outlook: Neutral – The market is expected to continue consolidating.
• Key levels to watch:
  • Support: 1.0764 – A break below this level would shift the trend from neutral to bearish.
  • Resistance: 1.0948 – If the pair breaks above 1.0948, the uptrend from 1.0176 could continue, possibly testing 1.1214 as a key resistance level.

USD/JPY (US Dollar / Japanese Yen)

• Last week’s performance: The pair dipped to 146.50, then rebounded slightly.
• Outlook: Consolidation – The market is expected to remain in range-bound trading.
• Key levels to watch:
  • Resistance: 151.34 – A break above this level could trigger a broader bullish rebound.
  • Support: 146.50 – If the pair breaks below this level, the bearish trend may extend, possibly testing 139.52 as the next support.

GBP/USD (British Pound / US Dollar)

• Last week’s performance: The pair experienced modest gains, though upward momentum weakened.
• Outlook: Bullish – The trend remains upward, but cautious.
• Key levels to watch:
  • Resistance: 1.3434 – The pair is likely to aim for this key level.
  • Support: 1.2716 – A break below this level would neutralize the uptrend, signaling a potential short-term top and further downward correction.

USD/CHF (US Dollar / Swiss Franc)

• Last week’s performance: The pair dipped to 0.8756 before rebounding.
• Outlook: Range-bound trading expected.
• Key levels to watch:
  • Resistance: 0.8925 – A break above this level would shift the market sentiment toward bullish territory.
  • Support: 0.8756 – If the pair breaks below this level, the trend may turn bearish, targeting 0.8611 as the next support level.

AUD/USD (Australian Dollar / US Dollar)

• Last week’s performance: The pair fluctuated between 0.6363 and 0.6256, staying within a tight trading range.
• Outlook: Neutral – Consolidation is likely to continue.
• Key levels to watch:
  • Support: 0.6186 – A break below this level would turn the trend bearish, possibly targeting 0.6087.
  • Resistance: 0.6408 – If the pair breaks above this level, the rebound from 0.6087 could continue, with 0.6686 as the next target.

USD/CAD (US Dollar / Canadian Dollar)

• Last week’s performance: The pair hit a high of 1.4520 before pulling back.
• Outlook: Consolidation – The market may remain in range-bound trading.
• Key levels to watch:
  • Resistance: 1.4542 – A break above this level would shift the trend from neutral to bullish, targeting 1.4794.
  • Support: 1.4148 – A break below this level could indicate a shift toward a downward trend, potentially testing 1.3950.