Weekly Technical Analysis For July 13th To 17th, 2020

Pay Attention To US CPI inflation And ECB Rate Decision This Week

EUR/USD:

Investors have turned to the safe-haven asset as the COVID-19 cases surged last week, and dampened hopes of an economic recovery.

U.S. Supreme Court ruling allowed prosecutors access to U.S. President Donald Trump’s financial record. The ruling dealt a blow to Trump’s battle to keep the details of his finances under wraps and is an unwelcome surprise to his for re-election in November.

In the upcoming week, we will closely watch the US CPI inflation figures on Tuesday. Consumer prices are expected to come out at 0.5% last month and 0.6% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to be 1.1% on a year-over-year basis.

US Retail Sales figures will be closely watched on Thursday. Economists predict that retail sales ease to 5.0% in June from 17.7% last month. On the other hand, Core retail sales, which exclude autos, are expected to have increased by 5.0%.

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. 

We will also focus on the Eurozone Consumer Price Index on Friday. On the year-on-year basis, the Eurozone CPI is expected to stay at 0.3% A better than expected realization may support the single currency.

The EURUSD pair moved down below the 1.1307 main resistance level. As long as the pair stays below 1.1307 on a daily basis, we will see the support levels at 1.1237 and 1.1165. On the upside, if the pair rises above 1.1307, the next resistance level can be found at 1.1365.

Support :1.1237 - 1.1165 -  1.1114

Resistance : 1.1307 - 1.1365 - 1.1421

GBP/USD:

The UK CPI Inflation will be an important release for the Sterling in the upcoming week. CPI measures the change in the price of goods and services from the perspective of the consumer. The UK CPI inflation is expected to stay at 0.5% year-on-year. A higher than expected reading should be taken as positive for the Sterling.

The GBPUSD pair showed an upward movement and closed last week below the 1.2671 major resistance level. As long as the price stays below 1.2671, on a four hourly basis, the rise may pause and we will follow 1.2572 as a support level. On the other hand, if the pair goes beyond 1.2671, the next resistance level is holding at 1.2768.

Support : 1.2572 - 1.2502 - 1.2428

Resistance: 1.2671 - 1.2768 - 1.2838

USD/JPY:

Focus on the 106.72 daily support level in the USDJPY pair. As long as the pair stays above 106.72, on a daily basis, the downward movement might be limited and we will watch the resistance levels at 106.98 and 107.22. On the other hand, if the price drops below 106.72, the next support level can be seen at 106.41.

Support : 106.72 - 106.41 - 106.15

Resistance: 106.98 - 107.22 - 107.52

SILVER:

The Silver Price closed last week above the daily support level of 18.61. As long as the price stays above 18.61 on a daily basis, we will see 19.04 as the resistance level. On the downside, if the price shows a profit-taking action below 18.61, the support level will be at 18.16.

Support: 18.61 - 18.16 - 17.63

Resistance: 19.04 - 19.55

12 Jul 20 (Sun)

07:32 pm


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