Weekly Technical Analysis For October 21st to 25th, 2019
US Dollar eased versus the Euro last week after the US retail sales report for September was weaker than expected. Headline retail sales fell 0.3% while core retail sales fell 0.1%, missing estimates.
The single currency reached its strongest level in seven weeks after the U.K. and the European Union reached a deal on Brexit. However, the British Parliament deferred Saturday's vote in order to have more time to study the details.
In the upcoming week, the ECB will announce its rate decision and forward guidance on Thursday and outgoing President Mario Draghi may announce further actions at his press conference. European leaders have formally appointed Christine Lagarde as the next President of the ECB. Ms. Lagarde will take office on 1 November. This week's meeting will be the final monetary policy meeting for Draghi.
Weaker inflation in the eurozone and downside risks from global trade issues keeps the pressure Eurozone Economy. we are going to closely watch a package of measures to support a eurozone economy which is slowing down under the impact of U.S. trade policy.
Moreover, the U.S. economic data calendar is light this week with reports on existing home sales and new home sales the main releases to watch.
EUR/USD: The EUR/USD pair found buyers from the 1.1007 support level then hit the 1.1165 daily resistance level. if the price pulls back below 1.1165, we will watch 1.1114 and 1.1052 as support levels. On the upside, if the pair goes beyond 1.1165, the next resistance level can be found at 1.1237.
Support : 1.1114 - 1.1052 - 1.1007
Resistance : 1.1165 - 1.1237 - 1.1307
USD/JPY: Watch out for the 108.52 daily resistance level in the USD/JPY pair. If the price stays below 108.52 on a daily basis, we will face support levels at 108.14 and 107.82. In contrast, If the pair goes beyond 108.52, we will follow the next resistance level at 108.79.
Support: 108.14 - 107.82
Resistance: 108.52 - 108.79 - 109.09
Gold: Keep your eye on the 1492 main level on the GOLD price. If the yellow metal goes beyond and stays above 1492 on a daily basis, the key resistance level can be seen at 1509. On the downside, If the price shows a downward movement below 1492, the support level will be at 1478.
Support: 1478 - 1466 - 1453
Resistance: 1492 - 1509 - 1524
WTI: The Crude Oil Price is now trading above the main support level of 53.51. As long as the price stays above 53.51, on a four hourly basis, we will see 54.68 as a daily resistance level again. On the other hand, if the pair drops below 53.51, the next support level will be at 52.19.
Support: 53.51 - 52.19 - 51.08
Resistance: 54.68 - 56.40 - 57.98
USD/TRY: The USD/TRY pair showed an upward movement above the 5.7679 daily support level. As long as the pair stays above 5.7679 on a daily basis, we will see the resistance level at 5.9763. On the other hand, if the pair breaks down 5.7679, the next support levels will be at 5.6027.
Support: 5. 7679 - 5.6027 - 5.4538
Resistance: 5.9763 - 6.1475 - 6.3364
S&P 500 Futures Index: We will closely watch the key resistance level of 3001 in the SP500 futures index. In order for the rise to gain more momentum, it needs to break out and stay above 3001 a four hourly basis. At this point, the next resistance level can be seen at 3026. Otherwise, we will see 2962 as the main support level
Support: 2962 - 2939 - 2917
Resistance: 3001 - 3029
NZD/USD: The NZD/USD pair is trading above the main support level of 0.6386. As long as the price stays above 0.6386 on a four hourly basis, the rise may continue and the daily resistance level can be seen at 0.6425. On the other hand, if the price falls below 0.6386, the next support level will be at 0.6337.
Support: 0.6386 - 0.6337
Resistance: 0.6425 - 0.6488 - 0.6543