Weekly Technical Analysis From March 23rd to 27th, 2020

What To Watch For This Week

EUR/USD:

The Euro slumped further against the US Dollar last week as market volatility increased after the Bank of England (BoE) announced its second emergency rate cut this month.

The US Dollar rose to its highest level in more than three years last week on higher demand as the dash for cash continued. Fed said swaps lines will be in amounts up to $30bln for Australia, Brazil, South Korea, Denmark, Norway, and New Zealand.

All eyes are on the Coronavirus outbreak. Financial markets remain worried as the death toll from the new Coronavirus rises. Public fear is increasing and we will continue to monitor the global economic fallout from the virus's progression.

We will closely watch the US GDP Growth on Thursday. The US fourth-quarter gross domestic product is expected to see a growth of 2.1%, as the same as the previous estimate.

Besides the US GDP numbers,  this week's calendar also features U.S. data on Core Durable Goods Orders, PCE Price Index, Michigan Consumer Sentiment, New Home Sales as well as Manufacturing and Service PMI.

US Durable goods orders excluding transportation are expected to fall to -0.3% in February. A lower than expected reading should be taken as negative for the Greenback.

In the Eurozone area, focus on German Ifo Business Climate Index, Manufacturing and Service PMI in the upcoming week.

The EURUSD pair found sellers from the 1.1237 key resistance level and then dropped below 1.0728. As long as the price stays below 1.0728 on a four hourly basis, the selling pressure may continue and we will follow 1.0623 and 1.0487 as support levels. On the upside, if the pair goes beyond 1.0728, the next support level will be at 1.0806.
 
Support: 1.0623 - 1.0487

Resistance: 1.0728 - 1.0806 - 1.0875

GBP/JPY:

In the UK, the Monetary Policy Committee at a special meeting on 19 March voted to cut the Bank rate to 0.1% and increase its holdings of UK government and corporate bonds by £200 billion. Bank of England will also enlarge the term funding scheme

The pound showed a downward movement after the Bank of England on Thursday slashed rates and expanded its bond-buying program.

The GBPJPY pair showed a downward movement and closed last week below 128.63. As long as the pair stays below 128.63, on a four hourly basis, the downward movement may gain more momentum. At this point, we will face the support levels at 127.71 and 126.75. On the other hand, if the price goes beyond above 128.63, the next resistance level can be seen at 129.41.

Support: 127.71 - 126.75 

Resistance: 128.63 - 129.41 - 130.01

USD/JPY:

The USDJPY pair closed last week below the 110.93 main level. As long as the pair stays below 110.93, on a daily basis, we will face the daily support level at 110.36 and 09.72. On the other hand, if the price goes beyond above 110.93, the next resistance level can be seen at 111.52 again.

Support: 110.36 - 109.72 - 109.39

Resistance: 110.93 - 111.52 - 112.16

GOLD:

Keep your eye on the 1492 main support level on the GOLD price. If the yellow metal stays above 1492 on a daily basis, the rise may continue and the key resistance levels can be seen at 1509 and 1524.  On the downside, If the price drops below 1492, the next support level will be at 1478.

Support:  1492 - 1478 - 1466

Resistance: 1509 - 1524 - 1540

22 Mar 20 (Sun)

05:07 pm


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