What To Watch For Trading This Week

Weekly Technical Analysis For December 28th, 2020 to January 1st, 2021

The Brexit deal has been reached. The United Kingdom and the European Union closed in on a post-Brexit trade agreement after months of fraught negotiations

EU von der Leyen said a trade deal with the UK is fair, balanced, and right. It was a long and winding road but we got a good deal. We will ensure Brexit is left behind. The single market will be fair and remain so.

Traders focus that the U.S. Federal Reserve will maintain an accommodative monetary policy and expectations of more fiscal stimulus in 2021 to aid economic recovery from COVID-19.

Looking ahead, this week's calendar features U.S. data on CB Consumer Confidence, Pending Home Sales, and Chicago PMI as well as Initial Jobless Claims

US CB Consumer Confidence measures the level of consumer confidence in economic activity. It is expected to an outcome of 128.0.

US Pending home sales will be followed by the market. It is expected to rise to 0.5% m/m in November from a -1.1% fall in October. An increase in pending home sales is good news for the US housing market.

Liquidity over the New Years' holiday is expected to be particularly thin so please take the necessary precautions to ensure you are not affected by increased volatility and intermittent pricing.

Technical Analysis

EUR/USD: The EUR/USD pair moved up above the 1.2214 main support level. As long as the pair stays above 1.2214, on a daily basis, the upward movement may continue and we will see 1.2391 as a resistance level. On the downside, if the price drops below 1.2214, we will follow the next support level at 1.2046.

Support : 1.2214 - 1.2046 - 1.1819
Resistance : 1.2391 - 1.2536

GBP/USD: Focus on the 1.3517 main support level in the GBPUSD pair. If the pair trades above 1.3517 on a daily basis, the resistance level can be found at 1.3599 again. On the other hand, if the pair falls below 1.3517, the next support level is holding at 1.3392

Support: 1.3517 - 1.3392 - 1.3313
Resistance: 1.3599 - 1.3688 - 1.3784

EUR/JPY: The EUR/JPY pair closed last week below the 126.69 main resistance level. If the currency stays below 126.59 on a four hourly basis, we will watch the support levels at 125.85 and 125.07. On the other hand, If the pair rises above 126.69, the next resistance level is holding at 127.52.

Support: 125.85 - 125.07 - 124.24
Resistance: 126.69 - 127.52 - 128.39

Gold: Keep your eye on the 1873 main support level in the Gold Price. As long as the price stays above 1873, on a four hourly basis, we will follow the resistance levels at 1904 and 1932. On the downside, if the price breaks down below 1873, the next support level will be at 1854.

Support: 1873 - 1854 - 1829
Resistance: 1904 - 1932 - 1964

EUR/GBP: The EUR/GBP pair is now trading above the 0.8991 major support level. As long as the pair stays above 0.8991 on a four hourly basis, we will see the resistance level at 0.9026. On the other hand, if the price drops below 0.8991, the next support level will be at 0.8950.

Support: 0.8991 - 0.8950 - 0.8893
Resistance: 0.9026 - 0.9060 - 0.9099

Silver: The Silver Price has extended gains above the main support level of 24.39. If the price continues to rise above 24.39, we will see 27.87 as a resistance level. Otherwise, if the price shows a downward movement below 24.39, we will follow the next support level at 21.26.

Support: 24.39 -21.26 - 19.55
Resistance: 27.87 - 31.35