Weekly Technical Analysis For February 3rd to 7th, 2020

Pay Attention To US Non-Farm Payrolls Data This Week

EUR/USD:

The Federal Reserve held rates steady last Wednesday. Fed Chairman Jerome Powell said the central bank expects that the pace of bill purchases will continue until reserves reach an ample level, expected sometime in the second quarter. The pace of purchases will be gradually scaled down after enough reserves have been built up in the system.

On the other hand, the US Gross domestic product increased at a 2.1% pace in the fourth quarter of last year, in line with forecasts.

All eyes on the Coronavirus outbreak. Last week, the WHO declared the fast-spreading virus a global health emergency but noted that there is no need to issue travel and trade bans. At least 305 people are known to have died from the virus in China, which appeared in the city of Wuhan in December, with almost 10.000 cases nationally. We will continue to monitor the global economic fallout from the virus's progression

Get Ready for the US Jobs Report on Friday. US Nonfarm Payrolls is expected to see 161K jobs created after rising 145K 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 0.1%. An upbeat employment report will point to an improving US economy and support the greenback.

Focus on the 1.1052 main support level in the EURUSD pair. As long as the price stays above 1.1052 on a daily basis, the rise may continue and the resistance levels can be found at 1.1114 and 1.1165. On the other hand, if the price moves down 1.1052, we will see 1.1007 as the next support level

Support : 1.1052 - 1.1007 - 1.0965

Resistance : 1.1114 - 1.1165 - 1.1237

GBP/USD:

The Bank of England left its benchmark rate at 0.75%. BoE Governor Carney says survey data suggests that UK economic activity has picked up sharply since the UK election. He added that Monetary policy may need to reinforce expected growth recovery if recent signs of stronger global and domestic activity are not sustained, or domestic inflation stays relatively weak.

We are closely watching the 1.3231 main resistance level. In order for the rise to continue, it needs to break out and stay above 1.3231 on a four hourly basis. In this case, the next resistance level will be at 1.3313. Otherwise, the main support level can be found at 1.3136.
 
Support: 1.3136 - 1.3046 - 1.2947 

Resistance: 1.3231 - 1.3313 - 1.3392

USD/JPY:

The USDJPY pair dropped below the 108.52 daily level. If the price stays below 108.52 on a daily basis, the selling pressure may continue and we will support levels at 108.14 and 107.82. In contrast, If the pair goes above 108.52, we will see the next resistance level at 108.79.

Support : 108.14 - 107.82 - 107.52

Resistance: 108.52 - 108.79 - 109.09 

GOLD:

Keep your eye on the main resistance level of 1590. In order for the upward movement to continue, it needs to rise and sustain above 1590 on a daily basis. At this point, we will see 1606 as the next resistance level. Otherwise, If the price shows a downward movement below 1590, the support level will be at 1584.

Support: 1584 - 1575 - 1564

Resistance: 1590 - 1606

02 Feb 20 (Sun)

08:37 pm


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