Weekly Technical Analysis For October 21st to 25th, 2019

The Brexit Turmoil Continues And A Focus On The ECB Rate Decision!

EUR/USD:  

US Dollar eased versus the Euro last week after the US retail sales report for September was weaker than expected. Headline retail sales fell 0.3% while core retail sales fell 0.1%, missing estimates. 

The single currency reached its strongest level in seven weeks after the U.K. and the European Union reached a deal on Brexit

However, the British Parliament deferred Saturday's vote in order to have more time to study the details. As a result, Johnson was forced by law to request an extension from the EU. European Council President Donald Tusk will discuss the request with EU leaders, while Johnson plans to try and push the deal through at his end.

In the upcoming week, the ECB will announce its rate decision and forward guidance on Thursday and outgoing President Mario Draghi may announce further actions at his press conference. European leaders have formally appointed Christine Lagarde as the next President of the ECB. Ms. Lagarde will take office on 1 November.  This week's meeting will be the final monetary policy meeting for Draghi.

Weaker inflation in the eurozone and downside risks from global trade issues keeps the pressure Eurozone Economy. we are going to closely watch a package of measures to support a eurozone economy which is slowing down under the impact of U.S. trade policy. 

Moreover, the U.S. economic data calendar is light this week with reports on existing home sales and new home sales the main releases to watch.

The EURUSD pair found buyers from the 1.1007 support level then hit the 1.1165 daily resistance level. if the price pulls back below 1.1165, we will watch 1.1114 and 1.1052 as support levels. On the upside, if the pair goes beyond 1.1165, the next resistance level can be found at 1.1237.

Support : 1.1114 - 1.1052 - 1.1007

Resistance : 1.1165 - 1.1237 - 1.1307

GBP/USD:

The GBPUSD pair hit the five-month high level after British Prime Minister Boris Johnson and European Union leaders agreed on a new deal for Britain to exit the bloc.

The Pound is expected to plunge when the market opens this week after the UK Parliament deferred Saturday's vote.

If the GBPUSD shows a downward movement below 1.2947, we will see the main support levels at 1.2838 and 1.2768. On the upside, if the pair moves up above 1.2947, we will face the resistance level at 1.3046.

Support : 1.2947 - 1.2838 - 1.2768 

Resistance: 1.3046 - 1.3136

USD/JPY:

Watch out for the 108.52 daily resistance level in the USDJPY pair. If the price stays below 108.52 on a daily basis, we will face support levels at 108.14 and 107.82. In contrast, If the pair goes beyond 108.52, we will follow the next resistance level at 108.79. 

Support: 108.14 - 107.82

Resistance: 108.52 - 108.79 - 109.09

GOLD:

Keep your eye on the 1492 main level on the GOLD price. If the yellow metal goes beyond and stays above 1492 on a daily basis, the key resistance level can be seen at 1509.  On the downside, If the price shows a downward movement below 1492, the support level will be at 1478.

Support: 1478 - 1466 - 1453

Resistance:  1492 - 1509 - 1524

20 Oct 19 (Sun)

07:29 pm


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