A Busy Week For Trading: Focus On U.S. Nonfarm Payrolls

Weekly Technical Analysis May 3rd to 8th, 2020

In the upcoming week, keep your eye on the US Jobs Report. The US Non-Farm Payrolls may give the market the first grim picture of a coronavirus-hit economy.

April's US Nonfarm Payrolls is expected to drop -21.000K. The Unemployment Rate is expected to rise to 16.0% from 4.4%. Average hourly earnings will also be significant and are expected to be 0.4%. This may show the coronavirus negative impact on the American economy.

Moreover, the economic calendar will bring an update on the health of the U.S. economy, with reports on Factory Orders, Initial Jobless Claims and ISM Non-Manufacturing PMI as well as Services PMI.

EUR/USD: The EUR/USD pair found buyers from the 1.0806 main support level and then showed an upward movement last week. As long as the pair stays above 1.0965 on a daily basis, the rise may continue, we will see 1.1007 and 1.1052 as key resistance levels. In contrast, if the pair breaks down below 1.0965, we will face 1.0930 as the next support level.

Support: 1.0965 - 1.0930 - 1.0806
Resistance: 1.1007 - 1.1052 - 1.1114

GBP/USD: The Bank of England’s monetary policy committee will announce the results of its latest meeting Thursday. The BoE is expected to leave interest rates unchanged. We might see a response from BoE for the economic risk posed by the coronavirus threat.

The GBP/USD pair is currently trading above the key support level of 1.2428. As long as the pair stays above 1.2428 on a four hourly basis, we will see 1.2502 as a resistance level. On the other hand, if the price drops below 1.2428, we will see the next support level at 1.2364.

Support : 1.2428 - 1.2364 - 1.2286
Resistance : 1.2502 - 1.2572 - 1.2671

USD/JPY: The USD/JPY downward movement paused at the 106.72 daily support level. As long as the pair stays above 106.72, on a daily basis, we will watch the resistance levels at 106.98 and 107.22. On the other hand, if the price drops below 106.72, the next support level can be seen at 106.41.

Support : 106.72 - 106.41 - 106.15
Resistance: 106.98 - 107.22 - 107.52

S&P 500 Futures Index: We are closely watching the main support level of 2788 in the S&P 500 Futures index. As long as the index stays above 2788 on a daily basis, we might see an upward movement and we will follow the resistance level at 2835. On the downside, If the price drops below 2788, the next support level can be seen at 2751.

Support: 2788 - 2751 - 2684
Resistance: 2835 - 2882 - 2917

USD/CHF: The USD/CHF pair is now trading below the main resistance level of 0.9656. As long as the price stays below 0.9656 on a four hourly basis, we will see the key support levels at 0.9589 and 0.9550. On the upside, if the price rises above 0.9656, the next resistance level can be found at 0.9701

Support: 0.9589 - 0.9550 - 0.9437
Resistance: 0.9656 - 0.9701 - 0.9757