Weekly Technical Analysis For February 3rd to 7th, 2020
The Federal Reserve held rates steady last Wednesday. Fed Chairman Jerome Powell said the central bank expects that the pace of bill purchases will continue until reserves reach an ample level, expected sometime in the second quarter. The pace of purchases will be gradually scaled down after enough reserves have been built up in the system.
On the other hand, the U.S. Gross domestic product increased at a 2.1% pace in the fourth quarter of last year, in line with forecasts.
All eyes on the Coronavirus outbreak. Last week, the WHO declared the fast-spreading virus a global health emergency but noted that there is no need to issue travel and trade bans. At least 305 people are known to have died from the virus in China, which appeared in the city of Wuhan in December, with almost 10.000 cases nationally. We will continue to monitor the global economic fallout from the virus's progression
Get Ready for the U.S. Jobs Report on Friday. U.S. Nonfarm Payrolls is expected to see 161K jobs created after rising 145K the previous month. The Unemployment Rate is expected to stay at 3.5%. Average hourly earnings will also be significant and are expected to be 0.3% which is higher than the previous month's number of 0.1%. An upbeat employment report will point to an improving U.S. economy and support the greenback.
Technical Analysis:
EUR/USD: Focus on the 1.1052 main support level in the EUR/USD pair. As long as the price stays above 1.1052 on a daily basis, the rise may continue and the resistance levels can be found at 1.1114 and 1.1165. On the other hand, if the price moves down 1.1052, we will see 1.1007 as the next support level
Support : 1.1052 - 1.1007 - 1.0965
Resistance : 1.1114 - 1.1165 - 1.1237
GBP/USD: The Bank of England left its benchmark rate at 0.75%. BoE Governor Carney says survey data suggests that UK economic activity has picked up sharply since the UK election. He added that Monetary policy may need to reinforce expected growth recovery if recent signs of stronger global and domestic activity are not sustained, or domestic inflation stays relatively weak.
We are closely watching the 1.3136 main support level in the GBP/USD pair. If the pair stays above 1.3136 on a four hourly basis, the main resistance level will be at 1.3231. In contrast, if the pair drops below 1.3136, the next daily support level can be found at 1.3046.
Support: 1.3136 - 1.3046 - 1.2947
Resistance: 1.3231 - 1.3313 - 1.3392
USD/JPY: The USD/JPY pair is now trading below the 108.52 daily level. As long as the price stays below 108.52 on a daily basis, the selling pressure may continue and we will support levels at 108.14 and 107.82. In contrast, If the pair goes above 108.52, we will see the next resistance level at 108.79.
Support : 108.14 - 107.82 - 107.52
Resistance: 108.52 - 108.79 - 109.09
GOLD: The Gold Price found sellers from the daily resistance level of 1590 in the Asian Trade Session. In the event that the downward movement continues, we will see 1575 as a daily support level. On the upside, if the price goes beyond 1584, the main resistance level will be at 1590 again.
Support: 1575 - 1564 - 1555 - 1540
Resistance: 1584 - 1590 - 1606
USD/TRY: The USD/TRY pair is now trading above the 5.9763 main support level. As long as the pair stays above 5.9763 on a daily basis, the rise may gain more power and we will see the resistance level at 6.0672. On the other hand, if the pair falls below 5.9763, the support levels will be at 5.9449 and 5.9228.
Support: 5.9763 - 5.9449 - 5.9228
Resistance: 6.0672 - 6.1475 - 6.3364
USD/CAD: The USD/CAD pair is currently trading above the main level of 1.3233. If the pair stays above 1.3233 on a four hourly basis, the upward movement may continue and we will follow 1.3287 as a daily resistance level. In contrast, If the price drops below 1.3233, we will see the main support level at 1.3181.
Support: 1.3233 - 1.3181 - 1.3123
Resistance: 1.3287 - 1.3344 - 1.3410
GBP/JPY: The GBP/JPY pair is currently trading above the 142.62 main support level. As long as the pair stays above 142.62 on a four hourly basis, the upward movement may gain more momentum and we will watch 143.69 as a daily resistance level. On the other hand, if the pair drops below 142.62, the next support level will be placed at 140.59.
Support: 142.62 - 140.59 - 139.24
Resistance: 143.69 - 145.24 - 146.33
S&P500 FUTURES INDEX: The S&P 500 Futures is now trading above the key support level of 3235. If the index stays above 3235 on a four hourly basis, the resistance level can be seen at 3266. On the other hand, if the price drops below 3235, we will see 3208 as the next support level.
Support: 3235 - 3208 - 3184
Resistance: 3266 - 3301 - 3335