Weekly Technical Analysis For Dec. 2-6, 2019
The euro extended losses versus the US dollar after the releases of strong US economic data last week.
Third-quarter economic growth was revised up to an annualized 2.1% from the first reading of 1.9%. US durable goods gained 0.6% after falling 1.4% in the prior month.
U.S. President Donald Trump approved two bills that backs Hong Kong’s anti-government protestors. However, Most Economists think, Trump's signing of the HK bill will not derail a US-China trade deal.
On the other hand, European Consumer Price Index picked up to 1.0% from a three-year low of 0.7% in October, beating expectations for a 0.9% reading, but remains far below ECB's target.
In the upcoming week, all eyes will be on Eurozone GDP Number and US Jobs Report.
The Eurozone GDP is expected to come out at 0.2% q-o-q growth as the same as the previous number. This would lead to an annual realization of 1.2%. A better than expected realization may support EUR/USD.
Watch out for the US Non-Farm Payrolls this Friday. US Nonfarm Payrolls is expected to see 180K jobs created after rising 128K the previous month. The Unemployment Rate is expected to stay at 3.6%. Average hourly earnings will also be significant and are expected to be 0.3% which is higher than the previous month's number of 0.2%. An upbeat employment report will point to an improving US economy and support the greenback.
Technical Analysis:
EUR/USD: The EUR/USD pair showed a downward movement last week. Focus on the key level of 1.1007. If the EUR/USD pair stays above 1.1007 on a four hourly basis, we will see the resistance level at 1.1052. On the downside, if the price breaks down below 1.1007, the next support level will be at 1.0965.
Support: 1.1007 - 1.0965 - 1.0930
Resistance: 1.1052 - 1.1114 - 1.1165
GBP/USD: Keep your eye on the 1.2947 main resistance level. In order for the GBP/USD rise to gain more momentum, it needs to break out and stay above 1.2947 on a four hourly basis. At this point, the next resistance level will be at 1.3046. Otherwise, the key support level will be found at 1.2838 again.
Support: 1.2838 - 1.2768 - 1.2671
Resistance: 1.2947 - 1.3046 - 1.3136
Gold: The Gold Price found buyers from the 1453 support level and then hit the major resistance level of 1466. In order for the upward movement to gain more power, it needs to break out and stay above 1466 on a daily basis. Should this occur, the next resistance level can be seen at 1478. Otherwise, the rise may be limited and the key support level can be found at 1453 again.
Support: 1453 - 1440 - 1421
Resistance: 1466 - 1478 - 1492
USD/CAD: The BoC monetary policy decision will be announced on Wednesday. The Bank of Canada is widely expected to keep interest rates on hold this week.
The USD/CAD pair is currently trading above the major support level of 1.3287. As long as the pair stays above 1.3287 on a daily basis, we will follow 1.3344 as a key resistance level. On the other hand, if the price falls below 1.3287, we will see the next support level at 1.3233.
Support: 1.3287 - 1.3233 - 1.3181
Resistance: 1.3344 - 1.3410 - 1.3466
EUR/JPY: The EUR/JPY pair moved up above the 120.75 key support level. As long as the pair stays above 120.75 on a four hourly basis, the upward movement may continue and we will watch the key resistance level at 121.59. On the downside, if the pair breaks down below 120.75, the next daily support level will be at 120.13
Support: 120.75 - 120.13 - 119.49
Resistance: 121.59 - 122.37 - 123.14
USD/CHF: The USD/CHF pair is now trading above the 0.9998 daily support level. If the price stays above 0.9998 on a daily basis, the upward movement may gain more power and we will watch the resistance level at 1.0047. Although, if the price drops below 0.9998, the next support level will be at 0.9938.
Support: 0.9998 - 0.9938 - 0.9877
Resistance: 1.0047 - 1.0096 - 1.0151
AUD/JPY: We are closely watching the 74.29 daily level in the AUD/JPY pair. If the pair stays above 74.29, on a daily basis, the rise may continue and the resistance level can be found at 75.15. In contrast, if the price drops below 74.29, the next support level will be at 73.64.
Support : 74.29 - 73.64 - 72.94
Resistance : 75.15 - 76.26 - 76.98