Weekly Technical Analysis For July 20th to 25th, 2020
What To Watch For Trading This Week
The Euro stayed strong against the US Dollar after the ECB Rate Decision last week. The European Central Bank (ECB) decided to leave the interest rates on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25%, and -0.50%, respectively, as expected.
Last week, the U.S. Consumer Price Index (CPI) showed a 0.6% increase month-on-month which is better than expected. Moreover, U.S. retail sales rose by 7.5% in June, better than the 5.0% expected. Core retail sales, which exclude automobiles, rose 7.3%.
European Union leaders meet in Brussels seeking to overcome their differences over a proposed stimulus package. Markets have hoped for further progress on the European Union’s (EU) €750 billion recovery fund.
There’s a wave of economic data coming out this week. Focus on Existing Home Sales, New Home Sales Orders, Manufacturing and Service PMI as well as Crude Oil Inventories in the US.
Existing Home Sales measure monthly sales of previously owned single-family homes and is expected to rise by 26.0% m/m in June.
On the other hand, US Manufacturing PMI for July is expected to rise to 51.3 from 49.8 in the previous month.
The EURUSD pair extended gains last week and moved up above the daily level of 1.1421. As long as the price stays above 1.1421, on a daily basis, the rise may gain more power and we will watch 1.1507 as a resistance level. On the downside, if the price drops below 1.1421, we will follow the next support level at 1.1365.
Support : 1.1421 - 1.1365 - 1.1307
Resistance : 1.1507 - 1.1589 - 1.1658
In the upcoming week, UK Retail Sales will be published on Friday. UK Core Retail Sales excluding auto and gas are expected to drop to -3.7% y-o-y in June.
The GBPUSD pair closed last week below the daily resistance level of 1.2572. As long as the price stays below 1.2572, on a daily basis, the downward movement may continue and we will follow 1.2502 and 1.2428 as support levels. On the other hand, if the pair goes beyond 1.2572, the next resistance level is holding at 1.2671.
Support: 1.2502 - 1.2428 - 1.2364
Resistance: 1.2572 - 1.2671 - 1.2768
The USDJPY pair closed last week above the key support level of 106.98. As long as the pair sustains above 106.98 on a four hourly basis, we will see the resistance level at 107.22. On the other hand, if the pair fall back below 106.98, the next support level will be placed at 106.72.
Support: 106.98 - 106.72 - 106.41
Resistance: 107.22 - 107.52 - 107.82
The Silver Price surged last week and moved up above the 19.04 main support level. If the upward movement continues above 19.04, we will see resistance level at 19.55. On the downside, if the price falls below 19.04, the next support level can be seen at 18.61
Support: 19.04 - 18.61 - 18.16
Resistance: 19.55 - 21.26 - 24.39
19 Jul 20 (Sun)
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