Weekly Technical Analysis For July 27th to 31st, 2020

Get Ready For Fed Interest Rate Decision This Week

EUR/USD:

EU summit closed with 750 billion Euros of the aid package last week. European leaders finally agree over 750 billion Euros of fiscal stimulus. After laborious talks of five days, policymakers of the bloc managed to the bifurcation of 360 billion of loans and 390 billion of grants as a part of the Recovery Fund.

The Gold, Silver, and Euro surged after European leaders managed to strike an agreement on the recovery fund.

The dollar has extended losses against all major currencies last week, weighed by doubts about the strength of the U.S. economic recovery as the country struggles to curb the number of coronavirus cases.

US-China Geopolitik tension accelerated last week. China ordered the United States to close its consulate in the city of Chengdu on Friday, responding to a U.S. demand this week that China closes its Houston consulate. 

In the upcoming week, the Federal Reserve will deliver its interest rate decision. There is no interest rate change expected from the Fed. Powell will hold a press conference following the meeting, with awaiting his insights on the policy outlook.

Besides the Rate Decision, keep your eye on US GDP Growth on Thursday. The US second-quarter gross domestic product is expected to drop to -34.0% from -5.0%

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 June core PCE is expected to remain unchanged at 1.0% year on year basis.

Moreover, we will focus on the Eurozone Consumer Price Index on Friday. On the year-on-year basis, the Eurozone CPI is expected to ease to 0.2% from 0.3%.

The EURUSD pair reached the 1.1658 main resistance level last week. As long as the pair stays below 1.1658 on a daily basis, the upward movement may pause and we will see the support level at 1.1589. On the upside, if the pair rises above 1.1658, the next resistance level can be found at 1.1744.

Support : 1.1589 - 1.1507 - 1.1421

Resistance : 1.1658 - 1.1744 - 1.1815

GBP/USD:  

We are closely watching the 1.2768 daily resistance level in the GBPUSD pair. If the price stays above 1.2768 on a daily basis, the rise may gain more momentum and we will see the resistance level at 1.2838. On the downside, if the pair drops below 1.2768, we will face the support level at 1.2671
 
Support : 1.2768 - 1.2671 -1.2572

Resistance: 1.2838 - 1.2947 - 1.3046

USD/JPY:

The USDJPY pair closed last week below the daily resistance level of 106.15. As long as the price stays below 106.15, on a daily basis, we will follow 105.84 and 105.58 as support levels again. On the other hand, if the price goes beyond 106.15, the next resistance level can be seen at 106.41 

Support: 105.84 - 105.58 - 105.30
 
Resistance : 106.15 - 106.41 - 106.72 

SILVER:

The Silver Price skyrocketed last week and moved up above the 21.26 main support level. If the upward movement continues above 21.26, we will see resistance level at 24.39. On the downside, if the price falls below 21.26, the next support level can be seen at 19.55.

Support: 21.26 - 19.55 - 19.04 

Resistance: 24.39 - 27.87 - 31.35
 

26 Jul 20 (Sun)

05:49 pm


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