Weekly Technical Analysis For July 13th To 17th, 2020
In the upcoming week, we will closely watch the US CPI inflation figures on Tuesday. Consumer prices are expected to come out at 0.5% last month and 0.6% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to be 1.1% on a year-over-year basis.
US Retail Sales figures will be closely watched on Thursday. Economists predict that retail sales ease to 5.0% in June from 17.7% last month. On the other hand, Core retail sales, which exclude autos, are expected to have increased by 5.0%.
In addition to the US data, the European Central Bank will announce its rate decision and forward guidance on Thursday. We might see a response from ECB for the economic risk posed by the coronavirus threat.
We will also focus on the Eurozone Consumer Price Index on Friday. On the year-on-year basis, the Eurozone CPI is expected to stay at 0.3% A better than expected realization may support the single currency.
EUR/USD: The EUR/USD pair moved up above the daily level of 1.1307. As long as the price stays above 1.1307, on a daily basis, the rise may gain more power and we will watch 1.1365 as a resistance level. On the downside, if the price drops below 1.1307, we will follow the next support level at 1.1237
Support: 1.1307 - 1.1237 - 1.1165
Resistance: 1.1365 - 1.1421 - 1.1507
GBP/USD: The UK CPI Inflation will be an important release for the Sterling in the upcoming week. CPI measures the change in the price of goods and services from the perspective of the consumer. The UK CPI inflation is expected to stay at 0.5% year-on-year. A higher than expected reading should be taken as positive for the Sterling.
The GBP/USD pair showed an upward movement in the Asian Trading Session and it is now trading just below the 1.2671 major resistance level. As long as the price stays below 1.2671, on a four hourly basis, the rise may pause and we will follow 1.2572 as a support level. On the other hand, if the pair goes beyond 1.2671, the next resistance level is holding at 1.2768.
Support : 1.2572 - 1.2502 - 1.2428
Resistance: 1.2671 - 1.2768 - 1.2838
USD/JPY: Focus on the 106.72 daily support level in the USD/JPY pair. As long as the pair stays above 106.72, on a daily basis, the downward movement might be limited and 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
GBP/JPY: The GBP/JPY pair is now trading above the 135.15 main support level. As long as the pair stays above 135.15 on a four hourly basis, the upward movement may gain more momentum and we will watch 136.01 as a resistance level. On the other hand, if the pair drops below 135.15, the next support level will be placed at 134.03.
Support: 135.15 - 134.03 - 132.96
Resistance: 136.01 - 136.98 - 138.25
AUD/USD: The AUD/USD pair is currently trading above the 0.6965 key support level. If the price stays above 0.6965, on a four hourly basis, the key resistance level can be seen at 0.7020. Otherwise, if the price drops below 0.6965, the next daily support level is holding at 0.6909.
Support: 0.6965 - 0.6909 - 0.6848
Resistance: 0.7020 - 0.7080 - 0.7129
NZD/USD: The NZD/USD pair showed an upward movement above the daily support level of 0.6543. If the rise continues, the key resistance level can be seen at 0.6611. On the other hand, if the price drops below 0.6543, the next support level will be at 0.6488.
Support: 0.6543 - 0.6488 - 0.6425
Resistance: 0.6611 - 0.6673 - 0.6728
Brent Oil: The Brent Oil Price stayed above the 42.67 main support level. As long as the price trades above 42.67 on a four hourly basis, the rise may gain more momentum and we will follow the major resistance level at 45.28. Otherwise, If the price falls below 42.67, the next daily support level will be placed at 39.58.
Support: 42.67 - 39.58 - 36.56
Resistance: 45.28 - 49.67 - 53.38