Weekly Technical Analysis For June 1st to 5th, 2020

Weekly Technical Analysis For June 1st to 5th, 2020

Get Ready For The US Non-Farm Payrolls This Week

EUR/USD: 

The Euro rose versus the US Dollar last week, driven by increased confidence in the global economy.

The release of the Eurozone’s flash CPI data for May fell from 0.3% to 0.1% last week which is a four-year low.

Thursday’s initial jobless claims data showed that more than two million Americans filed for unemployment benefits for the first time last week.

In the upcoming week, pay attention to the US Jobs Report. The US Non-Farm Payrolls may give the market the first grim picture of a coronavirus-hit economy.

May's US Nonfarm Payrolls are expected to drop -8.250K. The Unemployment Rate is expected to rise to 19.7% from 14.7%. Average hourly earnings will also be significant and are expected to ease to 1.0% from 4.7%. This may show the coronavirus negative impact on the American economy.

Moreover, the economic calendar will bring an update on the health of the U.S. economy, with reports on Factory Orders, Initial Jobless Claims, and ISM Non-Manufacturing PMI as well as Manufacturing PMI. 

In addition to the US data, the European Central Bank will announce its rate decision and forward guidance on Thursday. We might see a response from ECB for the economic risk posed by the coronavirus threat. 

In the last meeting, ECB announced a new series of Non-targeted Pandemic Emergency LTRO, which will consist of 7 new refinancing operations from May 2020. 

In this week's meeting, The ECB is widely expected to announce a 500 billion-euro ($555 billion) increase to its Pandemic Emergency Purchase Program and extend is duration until mid-2021

The EURUSD pair found buyers from the 1.0876 main support level and then reached the key resistance level of 1.1114. However, if the price stays below 1.1114, on a four hourly basis, the rise may pause and we will follow the support levels at 1.1052. On the other hand, if the price goes beyond 1.1114, the next resistance level will be at 1.1165.

Support : 1.1052 - 1.0007 - 1.0965

Resistance : 1.1114 - 1.1165 - 1.1237

GBP/USD:

The GBPUSD pair closed last week below the key resistance level of 1.2364. As long as the price stays below 1.2364,  on a daily basis, we will follow 1.2286 and 1.2205 as support levels. On the other hand, if the pair rises above 1.2364, the next resistance level is holding at 1.2428.

Support: 1.2286 - 1.2205 - 1.2110

Resistance: 1.2364 - 1.2428 - 1.2502

USD/JPY:

We will closely watch the 107.82 daily resistance level. As long as the pair stays below 107.82, on a daily basis, we will see 107.52 and 107.22 as support levels. In contrast, if the price rises above 107.82, the next resistance level will be at 108.14.
 
Support : 107.52 - 107.22 - 106.98

Resistance: 107.82 - 108.14 - 108.52 

SILVER:

The Silver Price jumped up from the 16.80 main support level and then moved up above the key level of 17.63.  As long as the price stays above 17.63, on a daily basis, the bullish action may continue and we will see resistance levels at 18.16 and 18.61. On the downside, if the price drops below 17.63, the next support level can be seen at 17.11

Support: 17.63 - 17.11 - 16.80

Resistance: 18.16 - 18.61 - 19.04

31 May 20 (Sun)

05:46 pm


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