Weekly Technical Analysis For February 10th to 14th, 2020
Last Friday's US Non-Farm Payrolls Data showed that; the U.S. economy added 225K jobs in January, well above the 160K consensus forecast. Average hourly earnings rose by 0.2%, falling short of the 0.3% increase expected. The jobless rate edged up to 3.6%, from 3.5%.
In the upcoming week, we will closely watch the US CPI inflation figures on Thursday, which should lend further support to the notion that inflation has returned to the Fed’s target.
Consumer prices are expected to have risen 0.2% last month and 2.5% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to be 2.2% on a year-over-year basis.
In addition to US Inflation Data, the Commerce Department will report January retail sales numbers on Friday. Economists predict that retail sales rose by 0.3% last month. On the other hand, Core retail sales, which exclude autos, are expected to have risen by 0.3%. A higher than expected reading should be taken as positive for the greenback.
We will also watch the testimony from Federal Reserve Chair Jerome Powell, who appears Tuesday and Wednesday before congressional panels on the economy and monetary policy.
Moreover, the Eurozone GDP will be published on Friday and it is expected to come out at 0.1% q-o-q growth as the same as the previous number. This would lead to an annual realization of 1.0%.
Technical Analysis:
EUR/USD: The EUR/USD pair showed a downward movement last week. Keep your eye on the major resistance level of 1.0965. If the price stays below 1.0965 on a daily basis, the selling pressure may continue and we will watch 1.0930 and 1.0876 as support levels. On the other hand, if the pair rises above 1.0965, the next resistance level will be at 1.1007.
Support: 1.0930 - 1.0876
Resistance: 1.0965 - 1.1007 - 1.1052
GBP/USD: UK Manufacturing Production will be published on Tuesday. The UK Manufacturing Production is expected to rise to 0.5% in December from -1.7% fall in the previous reading. Additionally, we will focus on monthly GDP figures for further hints on the health of the economy.
The GBP/USD pair showed a downward movement and dropped below 1.2947. If the bearish action continues below 1.2947, we will follow support levels at 1.2838 and 1.2768. In contrast, if the price rises above 1.2947, the daily resistance level can be seen at 1.3046.
Support : 1.2838 - 1.2768 - 1.2671
Resistance: 1.2947 - 1.3046 - 1.3136
USD/JPY: We will closely watch the 109.72 main support level in the USD/JPY pair. As long as the pair stays above 109.72 on a daily basis, we will see 110.36 as the key resistance level. On the downside, if the price drops below 109.72, we will see the support levels at 109.39 and 109.09.
Support : 109.72 - 109.39 - 109.09
Resistance : 110.36 - 110.93 - 111.52
Gold: The Gold Price found buyers from the 1555 daily support level and then showed an upward movement last week. Now, we will focus on the daily resistance level of 1575. In order for the rise to continue, it needs to rise and sustain above 1575 on a daily basis. At this point, we will see 1584. On the downside, if the price moves down below 1575, the support levels will be at 1564 and 1555 again.
Support: 1564 - 1555 - 1540
Resistance: 1575 - 1584 - 1590
SILVER: The Silver Price is now trading above the 17.63 daily support level. As long as the price stays above 17.63, on a daily basis, we will see resistance levels at 18.16 and 18.61. On the downside, if the price falls below 17.63, the next support level can be seen at 17.11
Support: 17.63 - 17.11 - 16.80
Resistance: 18.26 - 18.61 - 19.04
EUR/JPY: The EUR/JPY pair is trading above the 120.13 major support level. As long as the currency stays above 120.13 on a daily basis, the resistance level can be found at 120.75 again. On the other hand, if the price drops below 120.13, the next support level will be at 119.49.
Support: 120.13 - 119.49 - 118.73
Resistance: 120.75 - 121.59 - 122.37
EUR/GBP: The EUR/GBP pair is trading above the 0.8288 daily support level. If the price stays above 0.8488, on a daily basis, we will see 0.8535 as a key resistance level. On the other hand, if the price drops below 0.8488, the next support level will be at 0.8433.
Support: 0.8488 - 0.8433 - 0.8373
Resistance: 0.8535 - 0.8584 - 0.8626
USD/CAD: The USD/CAD pair is currently trading above the major support level of 1.3287. As long as the pair stays above 1.3287 on a daily basis, the rise may gain more momentum and we will follow 1.3344 as a key resistance level. On the other hand, if the price falls below 1.3287, we will see the next support level at 1.3233.
Support: 1.3287 - 1.3233 - 1.3181
Resistance: 1.3344 - 1.3410 - 1.3466
BTC/USD: The (BTC/USD) is trading below the daily resistance level of 9894. As long as the cryptocurrency stays below 9894, on a daily basis, the fall may continue and the main support level can be found at 9696 again. On the other hand, if the price goes beyond 9894, the next resistance level will be placed at 10088.
Support: 9696 - 9508 - 9321
Resistance: 9894 - 10088
USD/CHF: The USD/CHF pair is trading above the main support level of 0.9757. If the price stays above 0.9757 on a four hourly basis. we will see face 0.9831 as a resistance level. On the downside, If the pair drops below 0.9757, we will see the next support level at 0.9701.
Support : 0.9757 - 0.9701 - 0.9656
Resistance : 0.9831 - 0.9877 - 0.9938