Weekly Technical Analysis For April 13th to 17th, 2020
What To Watch For This Week
US Dollar was under pressure after the US Initial Jobless Claims soared to a worse-than-expected 6.6 million despite lower estimates. This laid bare the coronavirus’ negative impact on the American economy.
US Federal Reserve announced new lending plans with $2.3 trillion dollars being provided to support the American economy.
Moreover, last week’s Fed minutes showed that officials expect current ultra-loose monetary policy measures will remain in place against a "profoundly uncertain" backdrop, with the economy expected to enter a recession this year and not recover until next year in a worst-case scenario
Looking ahead, US Retail Sales figures will be closely watched on Wednesday. Economists predict that retail sales drop to -7.0% from -0.5% last month. On the other hand, Core retail sales, which exclude autos, are expected to have dropped by -3.0%.
US Housing Starts will be announced Thursday and it is a critical indicator of economic strength in the US. The market expects housing starts to ease to 1.300 mln from 1.452 mln.
US Building Permits as another key indicator of demand in the housing market measure the change in the number of new building permits issued by the government. It is expected to come out at 1.307 mln in March.
In addition to that, watch out for the Consumer Price Index in the Eurozone. On the year-on-year basis, the Eurozone CPI is expected to remain stable at 0.7%. A lower than expected reading will be negative for the single currency.
The EURUSD pair jumped up above the 1.0806 main support level and then closed last week above 1.0930. As long as the pair stays above 1.0930 on a four hourly basis, the rise may gain more momentum and we will see 1.0964 as a resistance level. In contrast, if the pair breaks down below 1.0930, the next support level will be at 1.0876.
Support: 1.0930 - 1.0876 - 1.0806
Resistance: 1.0964 - 1.1007 - 1.1052
The GBPUSD pair moved up from 1.2205 and then closed last week above the main support level of 1.2428. As long as the pair stays above 1.2428 on a four hourly basis, the upward movement öay continue, we will see 1.2502 and 1.2572 as resistance levels. On the other hand, if the price drops below 1.2428, we will see the next support level at 1.2364.
Support : 1.2428 - 1.2364 - 1.2286
Resistance : 1.2502 - 1.2572 - 1.2671
Focus on the 108.52 daily level in the USDJPY pair. As long as the price stays below 108.52 on a daily basis, 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
The GOLD Price surged from the 1612 main support level and then hit the 1684 daily resistance level. In order for the upward movement to gain more momentum, it needs to break out and stay above 1684 on a daily basis. Otherwise, we might see some pullbacks, the support level can be found at 1667.
Support: 1667 - 1638 - 1626
12 Apr 20 (Sun)
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