Technical Analysis And Key Economic Releases To Watch This Week

Weekly Technical Analysis For May 24th to 29th, 2020

We will closely watch the US GDP Growth on Thursday. The US first-quarter gross domestic product is expected to come out at -4.8%, the same as the previous estimate.

Besides the US GDP numbers, this week's calendar also features U.S. data on Core Durable Goods Orders, PCE Price Index, New Home Sales, Pending Home Sales as well as CB Consumer Confidence.

US Durable goods orders excluding transportation are expected to fall to -14.0% in April. A lower than expected reading should be taken as negative for the greenback.

The Fed’s preferred measure of inflation, the core PCE index, which calculates spending minus volatile food and energy costs, arrives along with personal spending and income numbers from the Commerce Department on Friday. The April core PCE is expected to come out at 1.1%, year on year basis.

In addition to that, watch out for the Consumer Price Index in the Eurozone. On the year-on-year basis, the Eurozone CPI is expected to ease to 0.1% from 0.3%. A lower than expected reading will be negative for the single currency.

Technical Analysis

EUR/USD: The euro extended losses against the US dollar Friday and dropped towards the daily support level of 1.0876. As long as the price stays above 1.0876 on a daily basis, the downward movement may pause and we will see 1.0930 as the key resistance level. In contrast, if the pair breaks down below 1.0876, the bearish action may gain more momentum.

Support: 1.0876 - 1.0806 - 1.0728
Resistance: 1.0930 - 1.0965 - 1.1007

GBP/USD: The GBP/USD pair closed last week below the daily level of 1.2205. If the price stays below 1.2205 on a daily basis, the selling pressure may continue and we will see 1.2110 as a
support level. On the upside, if the pair goes beyond 1.2205, the next support level will be at 1.2286.

Support: 1.2110 - 1.2024
Resistance: 1.2205 - 1.2286 - 1.2364

USD/JPY: The USD/JPY pair moved up above the 107.52 main support level last Friday. As long as the pair stays above 107.52, on a four hourly basis, the resistance levels can be found at 107.82 and 108.14. On the other hand, if the price falls below 107.52, the next support level will be at 107.22.

Support : 107.52 - 107.22 - 108.98
Resistance: 107.82 - 108.14 - 108.52

SILVER: The Silver Price closed last week above the 17.11 major support level. As long as the price stays above 17.11 on a daily basis, the rise may gain more momentum and we will see resistance level at 17.63. On the downside, if the price drops below 17.11, the next support level can be seen at 16.80.

Support: 17.11 - 16.80 - 16.52
Resistance: 17.63 - 18.16 - 18.61

USD/CHF: The USD/CHF pair moved up above the major support level of 0.9701. If the price stays above 0.9701 on a daily basis, we will see 0.9757 as a resistance level. On the downside, If the pair drops below 0.9701, we will see the next support level at 0.9656.

Support : 0.9701 - 0.9656 - 0.9598
Resistance : 0.9757 - 0.9831 - 0.9877

EUR/JPY: The EUR/JPY pair is now trading below the 117.34 main resistance level. As long as the price stays below 117.34 on a four hourly basis, we will follow the support level at 116.44. On the other hand, if the price goes beyond 117.34, the next resistance level can be found at 118.12.

Support: 116.44 - 115.52 - 114.78
Resistance: 117.34 - 118.12 - 118.73

EUR/GBP: The EUR/GBP pair showed a downward movement below the daily resistance level of 0.8950. In the event that the fall continues below 0.8950, we will see 0.8893 and 0.8846 as support levels. In contrast, if the pair rises above 0.8950, the main resistance level can be found at 0.8991.

Support: 0.8893 - 0.8846 - 0.8796
Resistance: 0.8950 - 0.8991 - 0.9026