Weekly Technical Analysis For October 28th to November 1st, 2019
The EUR/USD pair showed a downward movement last week after the ECB Rate Decision. The European Central Bank left monetary policy unchanged on Thursday. The meeting was the final monetary policy meeting for Draghi.
Christine Lagarde as the next President of the ECB will take office on 1 November. ECB's Wunsch said last week that the September package means Lagarde does not have to make decisions in the first few meetings.
ECB released the results of its latest survey of professional forecasters last Friday. Economists cut euro area inflation and economic outlook: 2019 inflation seen at 1.2% (previously 1.3%), 2020 inflation seen at 1.2% (previously 1.4%).
In the Eurozone, the German inflation figures for October will be published on Wednesday. The consensus forecast is that the report will show consumer prices rose 1.0%, slowing from 1.2% in September, remaining short of the European Central Bank's target of just below 2%.
Keep your eye on the gross domestic product on Wednesday, which is expected to show that U.S. economic growth ease to 1.7% from 2.0%.
The Fed is scheduled to hold its policy meeting on Wednesday. The Federal Reserve is expected to cut interest rates for a third time this year, but this is largely priced into the market. If the US economy continues to soften, we might see additional rate cuts from the Fed. Jerome Powell will hold a press conference following the meeting, with awaiting his insights on the policy outlook.
Finally, we will focus on the US Jobs Report on Friday. US Nonfarm Payrolls is expected to see 90K jobs created after rising 136K the previous month. The Unemployment Rate is expected to come out at 3.6%. Average hourly earnings will also be significant and are expected to be 0.3%, lower than the previous month's number of 0.4% An upbeat employment report will point to an improving US economy and support the greenback.
EUR/USD: The EUR/USD pair showed a downward movement below the key level of 1.1114 last Friday. If the price stays below 1.1114, on a four hourly basis, the fall may continue and we will follow the support levels at 1.1052 and 1.1007. On the other hand, if the price goes beyond 1.1114, the next resistance level will be at 1.1165 again.
Support : 1.1052 - 1.0007 - 1.0965
Resistance : 1.1114 - 1.1165 - 1.1237
GBP/USD: Keep your eye on the main level of 1.2838. If the GBP/USD pair stays below 1.2838 on a four hourly basis, the downward movement may continue and we will watch the support level at 1.2768. On the upside, if the price goes beyond 1.2838, the resistance level can be found at 1.2947.
Support : 1.2768 - 1.2671 - 1.2572
Resistance: 1.2838 - 1.2947 - 1.3046
GOLD: The Gold Price showed an upward movement last week. We will closely watch the main resistance level of 1509. In order for the rise to gain more momentum, it needs to break out and stay above 1509 on a four hourly basis. In this case, the next daily resistance level can be seen at 1524. Otherwise, the key support level can be seen at 1492 again.
Support: 1492 - 1478 - 1466
Resistance: 1509 - 1524 - 1540
WTI: Keep your eye on the key support level of 56.40 in the Crude Oil Price. As long as the price stays above 56.40, on a four hourly basis, the upward movement may continue and we will see 57.98 as a resistance level. On the downside, if the price falls below 56.40, the daily support level can be found at 54.68.
Support: 56.40 - 54.68 - 53.51
Resistance: 57.98 - 58.95 - 60.20
PLATINUM: The Platinum Price found buyers from the daily support level of 886 last week and then showed an upward movement. Focus on the 924 main support level now. If the price stays above 924 on a daily basis, the rise may gain more momentum and we will see 968 as a resistance level. Although, If the pair drops below 924, the next support level can be seen at 907.
Support: 924 - 907 - 886
Resistance: 968 - 1021 - 1100
SILVER: The Silver Price is currently trading above the 17.93 major support level. As long as the price stays above 17.93 on a four hourly basis, the rise may continue and we will see resistance level at 18.23. On the downside, if the price drops below 17.93, the next support level can be seen at 17.65.
Support: 17.93 - 17.65 - 17.30
Resistance: 18.23 - 18.38 - 18.50
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. However, the Canadian central bank may follow other global peers with a rate cut in the coming decisions. Any surprising revision would lead to volatility in Canadian dollar this week.
The USD/CAD pair is now trading just above the major support level of 1.3071. If the price stays above 1.3071 on a daily basis, we will follow the resistance level at 1.3123. On the other hand, if the price drops below 1.3071, the next support level can be found at 1.3009.
Support: 1.3071 - 1.3009 - 1.2943
Resistance: 1.3123 - 1.3181 - 1.3233
DOW30 Futures: The DOW30 futures index showed an upward movement last Friday. Keep your eye on the 26905 main support level. As long as the index stays above 26095 on a four hourly basis. we will see the resistance level at 27121. On the other hand, if the index falls below 26905, we will watch 26660 as the next daily support level.
Support: 26905 - 26660 - 26416
Resistance: 27121 - 27340
BTC/USD: The BTC/USD pair pulled back from the main resistance level of 9872. If the Bitcoin Price stays below 9872 on a daily basis, we will watch the support level at 8143 again. On the upside, if the price goes beyond 9872, the next resistance level can be found at 11403.
Support: 8143 - 6433 - 4087
Resistance: 9872 - 11403 - 13172