Weekly Technical Analysis For February 10th to 14th, 2020

Watch Out For The Fed Chair Powell's Testimony And US Inflation

EUR/USD:

Last Friday's US Non-Farm Payrolls Data showed that; the U.S. economy added 225K jobs in January, well above the 160K consensus forecast. Average hourly earnings rose by 0.2%, falling short of the 0.3% increase expected. The jobless rate edged up to 3.6%, from 3.5%.

In the upcoming week, we will closely watch the US CPI inflation figures on Thursday, which should lend further support to the notion that inflation has returned to the Fed’s target.

Consumer prices are expected to have risen 0.2% last month and 2.5% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to be 2.2% on a year-over-year basis.

In addition to US Inflation Data, the Commerce Department will report January retail sales numbers on Friday. 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 0.3%. A higher than expected reading should be taken as positive for the greenback.

We will also watch the testimony from Federal Reserve Chair Jerome Powell, who appears Tuesday and Wednesday before congressional panels on the economy and monetary policy.

Moreover, the Eurozone GDP will be published on Friday and it is expected to come out at 0.1% q-o-q growth as the same as the previous number. This would lead to an annual realization of 1.0%. 

The EURUSD pair showed a downward movement last week. Keep your eye on the major resistance level of 1.0965. If the price stays below 1.0965 on a daily basis, we will watch 1.0930 and 1.0876 as support levels. On the other hand, if the pair rises above 1.0965, the next resistance level will be at 1.1007.

Support: 1.0930 - 1.0876

Resistance: 1.0965 - 1.1007 - 1.1052

GBP/USD:  

UK Manufacturing Production will be published on Tuesday. The UK Manufacturing Production is expected to rise to 0.5% in December from -1.7% fall in the previous reading. Additionally, we will focus on monthly GDP figures for further hints on the health of the economy.

The GBPUSD pair showed a downward movement and dropped below 1.2947. If the bearish action continues below 1.2947, we will follow support levels at 1.2838 and 1.2768. In contrast, if the price rises above 1.2947, the daily resistance level can be seen at 1.3046.

Support : 1.2838 - 1.2768 - 1.2671

Resistance: 1.2947 - 1.3046 - 1.3136

USD/JPY:

We will closely watch the 109.72 main support level in the USDJPY pair. As long as the pair stays above 109.72 on a daily basis, we will see 110.36 as the key resistance level. On the downside, if the price drops below 109.72, we will see the support levels at 109.39 and 109.09.

Support : 109.72 - 109.39 - 109.09 

Resistance : 110.36 - 110.93 - 111.52

GOLD:

The Gold Price found buyers from the 1555 daily support level and then showed an upward movement last week. As long as the price stays above 1564, on a daily basis, we will watch the resistance levels at 1575 and 1590. On the downside, if the price falls below 1564, the next support level will be at 1555 again.

Support: 1564 - 1555 - 1540

Resistance: 1575 - 1584 - 1590

09 Feb 20 (Sun)

09:05 pm


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