Weekly Technical Analysis For May 13th to 17th, 2019

Watch Out For Eurozone Economic Data This Week

EUR/USD:

US Consumer Prices picked up slightly in April. The US Consumer Price Index rose 2.0% from a year ago, while core inflation, that excludes volatile food and energy costs, increased 2.1%.

Additional, the US Producer Prices rose in April, but the annualized reading unexpectedly held steady at 2.2%. Muted inflation has been key to stopping any further interest rate hikes from the Federal Reserve this year. 

Among next week's US data, Retail Sales, Building Permits, Housing Starts, Crude Oil Inventories as well as NY Empire State and Philadelphia Manufacturing Index will be closely followed by traders.

US Core Retail Sales excluding auto and gas are expected to ease to 0.7% m/m from 1.6% in the previous number. A lower than expected reading should be taken as negative for the greenback.

If we look at the Eurozone area, watch out for the Consumer Price Index and GDP numbers next week. On the year-on-year basis, the Eurozone CPI is expected to stay at 1.7%

The GDP is expected to come out at 0.4% q-o-q growth, the same as the previous number. This would lead to an annual realization of 1.2%. A better than expected realization may support the single currency.

The EURUSD pair closed last week above the 1.1219 daily support level. As long as the pair stays above 1.1219 on a daily basis, the upward movement may continue and we will watch 1.1285 as a resistance level. On the other hand, if the pair drops below 1.1219, the next support level will be at 1.1103.

Support:  1.1219 - 1.1103 - 1.0980

Resistance: 1.1285 - 1.1355 - 1.1450

GBP/USD:

The UK Unemployment Rate will be important for Sterling. It is expected to stay at 3.9% in March, the same as the previous reading. A lower than expected reading should be taken as positive for the Sterling

As long as the GBPUSD pair stays above 1.2994 on a daily basis, the downward movement may be limited and we will see resistance level at 1.3055. In contrast, if the price moves down below 1.2994, we will follow the next support level at 1.2931.

Support:   1.2994 - 1.2931 - 1.2871

Resistance: 1.3055 - 1.3152 - 1.3217

USD/JPY:

The USDJPY pair showed an upward reaction from the 109.57 daily support level last Friday. If the pair stays above 109.57 on a daily basis, we will follow the key resistance level at 110.35. On the other hand, if the pair breaks down below 109.57, the next support level can be found at 108.85.

Support: 109.57 - 108.95 - 108.49

Resistance: 110.35 - 111.18 - 111.85

GOLD:

The Gold Price showed an upward movement last week. We will focus on the daily resistance level of 1291. In order for the rise to gain more momentum, it needs to break out and stay above 1291 on a daily basis. At this point,  the next resistance level will be placed in 1305. Otherwise, the key support level will be found in 1278. again.

Support: 1278 - 1266 - 1251

Resistance: 1291 - 1305 - 1316

12 May 19 (Sun)

08:52 pm


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