A Busy Week Ahead: Focus On US-Iran Turmoil And US Jobs Report
US-Iran tensions were dominated last week. Commander of Iran's Revolutionary Guards, vice president of Hashd al-Shaabi group, killed in US airstrike in Baghdad. Afterward, Iran said they will suspend all limits on uranium enrichment activities. In the upcoming week, we will closely watch the market reaction to the US killing of a leading Iranian commander, which has sent Oil and Gold prices higher.
In the Eurozone, the minutes of the European Central Bank (ECB) meeting due Thursday is expected to provide investors with an insight into the European central bank’s thinking on monetary policy.
The European Central Bank kept monetary stimulus unchanged at President Christine Lagarde’s first policy meeting. Lagarde said she is different from her predecessor, Mario Draghi.
In addition to ECB Meeting Minutes, we will also focus on Eurozone Unemployment Rate on Thursday. Unemployment Rate for November is expected to stay at 7.5%.
Moreover, pay attention to US Jobs Report on Friday. US Nonfarm Payrolls is expected to see 160K jobs created after rising 266K the previous month. The Unemployment Rate is expected to stay at 3.5%. Average hourly earnings will also be significant and are expected to be 0.3% which is higher than the previous month's number of 0.2%. An upbeat employment report will point to an improving US economy and support the greenback.
The EURUSD pair showed a downward movement and dropped to below the 1.1165 daily level last week. If the pair stays below 1.1165, on a daily basis, we will see the support levels at 1.1114 and 1.1052. On the upside, if the pair breaks out 1.1165, the next resistance level can be seen at 1.1237.
Support : 1.1114 - 1.1052 - 1.1007
Resistance : 1.1165 - 1.1237 - 1.1307
The GBPUSD pair closed last week above the 1.3046 main support level. As long as the pair stays above 1.3046 on a daily basis, the key resistance levels can be seen at 1.3136 and 1.3231. On the other hand, if the pair falls below 1.3046, the next support level is holding at 1.2947.
Support: 1.3046 - 1.2947 - 1.2838
Resistance: 1.3136 - 1.3231 - 1.3313
The Japanese yen, safe-haven asset jumped up versus the US Dollar after U.S. airstrikes on Baghdad airport killed a senior Iranian military official. The USDJPY pair dropped below the 108.14 key level. if the price stays below 108.14 on a four hourly basis, we will follow the support level at 107.82. In contrast, If the pair goes above 108.14, we will see the next resistance level at 108.52
Support: 107.82 - 107.52 - 107.22
Resistance: 108.14 - 108.52 - 108.79
The Gold Price surged last week as tensions in the Middle East intensified after reports said a U.S. airstrike killed a senior Iranian military official.
In the event that the rise continues, we will see the daily resistance level of 1555. Moreover, in order for the upward movement to gain more momentum, it needs to rise and sustain above 1555 on a daily basis. Otherwise, we will see the 1540 key support level again.
Support: 1540 - 1524 - 1509
05 Jan 20 (Sun)
Important : One Billion Signals will not be liable for any losses sustained while using the services provided on the One Billion Signals application. This application is not a solicitation to trade forex signals, nor is the representation is being made that any account will, or is likely to, achieve profits or losses similar to those discussed on the application. The past performance of any trading system or methodology is not necessarily indicative of future results.
© 2020 One Billion Signals All Rights Reserved