Weekly Technical Analysis For May 24th to 29th, 2020

What To Watch For This Week

EUR/USD: 

US Dollar was under pressure after The FOMC Meeting Minutes last week. The minutes warned that the COVID-19 virus posed both a severe economic threat and a risk to financial stability, but also hinted at more stimulus measures for economic recovery.

However, tensions between the United States and China supported safe-haven demand for the greenback last Friday. China-U.S. disagreement came after Beijing moved to impose a new security law on Hong Kong after last year's pro-democracy unrest.

Looking ahead, we will closely watch the US GDP Growth on Thursday. The US first-quarter gross domestic product is expected to come out at -4.8%, 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,     New Home Sales, Pending Home Sales as well as  CB Consumer Confidence

US Durable goods orders excluding transportation are expected to fall to -14.0% in April. A lower than expected reading should be taken as negative for the Greenback.

The Fed’s preferred measure of inflation, the core PCE index, which calculates spending minus volatile food and energy costs, arrives along with personal spending and income numbers from the Commerce Department on Friday. The April core PCE is expected to come out at 1.1%, year on year basis.

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 ease to 0.1% from 0.3%. A lower than expected reading will be negative for the single currency.

The Euro extended losses against the US Dollar Friday and dropped towards the daily support level of 1.0876. As long as the price stays above 1.0876 on a daily basis, the downward movement may pause and we will see 1.0930 as the key resistance level. In contrast, if the pair breaks down below 1.0876, the bearish action may gain more momentum.
 
Support: 1.0876 - 1.0806 - 1.0728
 
Resistance: 1.0930 - 1.0965 - 1.1007

GBP/USD:

The GBPUSD pair closed last week below the daily level of 1.2205. If the price stays below 1.2205 on a daily basis, the selling pressure may continue and we will see 1.2110 as a support level. On the upside, if the pair goes beyond 1.2205, the next support level will be at 1.2286.

Support: 1.2110 - 1.2024

Resistance: 1.2205 - 1.2286 - 1.2364 

USD/JPY:  

The USDJPY pair moved up above the 107.52 main support level last Friday. As long as the pair stays above 107.52, on a four hourly basis, the resistance levels can be found at 107.82 and 108.14. On the other hand, if the price falls below 107.52, the next support level will be at 107.22.
 
Support :  107.52 - 107.22 - 108.98
 
Resistance: 107.82 - 108.14 - 108.52 

SILVER:

The Silver Price closed last week above the 17.11 major support level. As long as the price stays above 17.11 on a daily basis, the rise may gain more momentum and we will see resistance level at 17.63. On the downside, if the price drops below 17.11, the next support level can be seen at 16.80.

Support: 17.11 - 16.80 - 16.52

Resistance: 17.63 - 18.16 - 18.61

28 May 20 (Thu)

07:44 am


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