Weekly Technical Analysis For January 13th to 17th, 2020

US Non-Farm Payrolls Data Is Behind Us: Now Focus On US CPI Inflation

EUR/USD:

The U.S. economy added fewer jobs than expected last month. The US Nonfarm Payrolls rose 145K in December, compared with expectations for a rise of 164K according to economists’ forecasts. The unemployment rate remained steady at 3.5%, as predicted.

White House economic adviser Larry Kudlow said that job numbers are still very strong. Stock markets indicate higher economic growth. The translation of China deal has been authenticated, everything is completely in place." Kudlow added. 

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.

The EURUSD 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%.

Keep your eye on the 1.3046 daily support level in the GBPUSD pair. As long as the pair stays above 1.3046 on a daily basis, the 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

USD/JPY:

The USDJPY pair found buyers from the 107.82 main support level and then extended gains last week. If the price stays above 109.39 on a four hourly basis, we will face 109.72 as the daily resistance level. Otherwise, if the price drops below 109.39, we will see the next support level at 109.09.

Support : 109.39 - 109.09 - 108.79 

Resistance: 109.72 - 110.36 - 110.93

GOLD:

The Gold Price jumped back up above the daily support level of 1555. As long as the yellow metal price sustains above 1555 on a daily basis, the bullish action is most likely dominate. Otherwise, if the price breaks down below the 1555 main support level, the next support level will be at 1540.

Support: 1555 - 1540 - 1524

12 Jan 20 (Sun)

08:05 pm


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