Weekly Technical Analysis For October 7th to 12th, 2019
In the upcoming week, we will closely watch the US CPI inflation figures on Thursday, which should lend further support to the notion that inflation has returned to the Fed’s target.
Consumer prices are expected to have risen 0.1% last month and 1.8% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to climb 2.4% on a year-over-year basis.
Besides the inflation data, Investors will focus on the release of the minutes from the Federal Reserve's last meeting on Wednesday for further insight into the outlook for monetary policy in the months ahead.
The Fed cut interest rates for a second time this year in the last meeting. The rate cut was widely expected, but the split vote has raised some concern about predicting the future path of monetary policy.
EUR/USD: The EUR/USD pair closed last week above the daily support level of 1.0965. As long as the pair stays above 10965 on a daily basis, the rise may continue and we will see the resistance levels at 1.1007 and 1.1052. On the other hand, if the pair falls below 1.0964, the next support level will be located at 1.0930.
Support: 1.0965 - 1.0930 - 1.0876
Resistance: 1.1007 - 1.1052 - 1.1114
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
GOLD: Keep your eye on the key resistance level of 1509. In order for the upward movement to gain more momentum, it needs to break out and stay above 1509 on a four hourly basis. Should this occur, the next daily resistance level can be seen at 1524. Otherwise, the key support level will be at 1492.
Support: 1492 - 1478 - 1466
Resistance: 1509 - 1524 - 1540
WTI: The Crude Oil Price is moving up slightly. In the event that the upward movement continues, the daily resistance level can be found at 53.51. On the other hand, if the price shows a downward movement, the next support level will be placed at 52.19 again.
Support: 52.19 - 51.08
Resistance: 53.51 - 54.68 - 56.40
DAX30 Futures Index: The DAX Index hit 12027 key resistance level. In order for the rise to gain more momentum, it needs to break out and stay above 12027 on a four hourly basis. At this point, the next daily resistance level can be found at 12153. Otherwise, the main support level will be at 11862 again.
Support: 11862 - 11749 - 11555
Resistance:12027 - 12153 - 12254
EUR/JPY: The EUR/JPY pair is now trading below the 117.34 key resistance level. If the pair stays below 117.34 on a four hourly basis, the selling pressure may continue and we will see support level at 116.44. On the other hand, if the price goes beyond 117.34, the next resistance level can be seen at 118.12.
Support: 116.44 - 115.52 - 114.78
Resistance: 117.34 - 118.12 - 118.73