Weekly Technical Analysis For January 13th to 17th, 2020
Looking ahead, we will closely watch the US CPI inflation figures Tuesday, which should lend further support to the notion that inflation has returned to the Fed’s target.
Consumer prices are expected to have risen 0.3% last month and 2.3% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to stay at 2.3% on a year-over-year basis.
In addition to US Inflation data, the US Commerce Department will report December retail sales numbers on Thursday. 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 0.5%. A higher than expected reading should be taken as positive for the greenback.
Investors will also get an update on the health of the U.S. housing market from reports on Building Permits and Housing Starts in the upcoming week.
Moreover, China's Liu He said to lead a 10-member delegation to Washington. The US and China Phase1 Trade Deal signing will be set for 15 January.
Technical Analysis:
EUR/USD: The EUR/USD pair closed last week above the main level of 1.1114. If the price stays above 1.1114, on a four hourly basis, the rise may gain more power and we will watch 1.1165 as a resistance level. On the downside, if the price drops below 1.1114, we will follow the next support level at 1.1052.
Support : 1.1114 - 1.1052 - 1.0979
Resistance : 1.1165 - 1.1237 - 1.1307
GBP/USD: The UK Office for National Statistics will release data on consumer price inflation for December on Wednesday. Analysts expect annual CPI to come out at 1.5%, while core inflation is forecast to ease, from 1.7% to 1.6%.
The GBP/USD pair is now trading below the 1.3046 main resistance level. If the pair stays below 1.3046 on a daily basis, the support level can be seen at 1.2947. On the other hand, if the price goes beyond 1.3046, the next resistance level will be at 1.3136.
Support: 1.3136 - 1.3231 - 1.3313
Resistance: 1.3046 - 1.2947 - 1.2838
USD/JPY: The USD/JPY pair showed an upward movement in the Asian Trading Session. The pair is now moving towards the 109.72 key resistance level. In order for the upward movement to continue, it needs to stay above 109.72 on a daily basis. At this point, we will face 110.36 as the next daily resistance level. Otherwise, we will follow the support level at 109.39.
Support : 109.39 - 109.09 - 108.79
Resistance: 109.72 - 110.36 - 110.93
Brent Oil: The Brent oil prices is now trading above the 64.73 main support level. As long as the price stays above 64.73 on a four hourly basis, we might see an upward movement and we will follow resistance level at 65.95. On the other hand. If the price falls below 64.73 the next support level can be found at 63.13
Support: 64.73 - 63.13 - 61.69
Resistance: 65.95 - 67.29 - 68.90
EUR/GBP: The EUR/GBP pair showed an upward movement above the 0.8488 daily support level. If the rise continues, we will follow the major resistance level at 0.8629. On the downside, if the price falls below 0.8488, the daily support level will be at 0.8316.
Support : 0.8488 - 0.8316
Resistance : 0.8629 - 0.8739 - 0.8796
AUD/USD: The AUD/USD pair showed an upward movement last week and it is now trading above the 0.6909 key support level. As long as the price stays above 0.6909, on a four hourly basis, the rise may continue and the main resistance level can be seen at 0.6965. On the other hand, if the price drops below 0.6909, the next daily support level will be at 0.6848.
Support: 0.6909 - 0.6848 - 0.6798
Resistance: 0.6965 - 0.7020 - 0.7080
EUR/JPY: The EUR/JPY pair showed an upward movement above the key support level of 121.59. In the event that the rise continues, we will follow the daily resistance level at 122.37. In contrast, if the pair drops below 121.59, the next support level can be found at 120.75.
Support: 121.59 - 120.75 - 120.13
Resistance: 122.37 - 123.14 - 124.24