U.S. Nonfarm Payrolls, Powell And Mnuchin's Testimony In Focucs

Weekly Technical Analysis For November 30th to December 4th, 2020

Looking ahead, focus on the US Jobs Report on Friday. US Nonfarm Payrolls are expected to ease 500K in November from 638K. The Unemployment Rate is expected to drop to 6.8% from 6.9%. Average hourly earnings will also be significant and are expected to come out 4.2%, year on year basis.

In addition to that, this week's calendar also features U.S. data on Pending Home Sales, ISM Non-Manufacturing PMI, and Factory Orders as well as Crude Oil Inventories

Moreover, Fed Chairman Jerome Powell and Treasury Secretary Steven Mnuchin are to testify before the Senate Banking Committee and the House Financial Services Committee in the upcoming week.

If we look at the Eurozone, we will closely watch the Consumer Price Index. On a year-on-year basis, the Eurozone CPI is expected to be -0.2%.

EUR/USD: The euro has extended gains versus the US Dollar above the major support level of 1.1819. If the upward movement continues, we will see 1.2064 as a resistance level. On the downside, if the price falls below 1.1819, we will follow the next support level at 1.1744.

Support : 1.1819 - 1.1744 - 1.1658
Resistance : 1.2046 - 1.2214 - 1.2391

Gold: The positive news of the vaccines increased risk appetites. In consequence, the safe-haven demand for gold declined last week.

Keep your eye on the 1763 main support level in the Gold Price. As long as the price stays above 1763, on a four hourly basis, the downward movement may be limited and we will see the daily resistance level at 1785. On the downside, if the price breaks down below 1763, the next support level will be at 1745.

Support: 1763 - 1745 - 1736
Resistance: 1785 - 1805 - 1829

EUR/JPY: The EURJPY pair is now trading above the 124.24 main support level. As long as the pair stays above 124.24 on a four hourly basis, we will follow the key resistance level at 125.07. On the downside, if the pair moves down below 124.24, the next major support level will be at 123.14

Support: 124.24 - 123.14 - 122.37
Resistance: 125.07 - 125.85 - 126.69

GBP/USD: The GBPUSD pair moved up above the 1.3313 main support level. If the pair stays above 1.3313 on a daily basis, the rise may gain more momentum and the key resistance level can be seen at 1.3392. On the other hand, if the pair falls below 1.3313, the next support level is holding at 1.3231

Support: 1.3313 - 1.3231 - 1.3136
Resistance: 1.3392 - 1.3517 - 1.3599

EUR/GBP: Keep your eye on the 0.8950 daily level in the EURGBP pair. As long as the pair stays above 0.8950 on a daily basis, we will see the resistance levels at 0.8991 and 0.9026. On the other hand, if the price drops below 0.8950, the next support level will be at 0.8893.

Support: 0.8950 - 0.8893 - 0.8846
Resistance: 0.8891 - 0.9026 - 0.9060