Weekly Technical Analysis For September 21st to 25th, 2020 

Keep Your Eye On Federal Reserve Chair Jerome Powell's Testify

EUR/USD:  

Last week, the U.S. Federal Reserve’s decision is not to provide additional stimulus at its latest meeting. The Federal Reserve kept rates unchanged Wednesday and signaled that interest rates would stay close to zero at least through 2023, to support the economy's ongoing recovery. This was widely expected, but the central bank also lifted its growth forecast for 2020 to show a contraction of 3.7%, compared with an estimate for a 6.5% decline previously. 

In the upcoming week, the Federal Reserve Chair Powell testifies on the CARES Act before the House Financial Services Committee, in Washington DC.

Besides the Fed Chair Powell Testifies,  this week's calendar also features U.S. data Existing Home Sales, Manufacturing PMI, New Home Sales, and Crude Oil Inventories as well as Core Durable Goods Orders.

US Durable goods orders excluding transportation are expected to ease to 1.3% in August from 2.0% in the previous week.

In the Eurozone, The German IFO Business Climate Index will be published on Thursday. The index based on a survey of manufacturers, builders, wholesalers, and retailers and it measures expectations of German Economic Activity for the next six months. The Index is expected to rise to 93.8 from 92.6 a month ago. 

Focus on the 1.1819 daily support level in the EURUSD pair. If the pair stays above 1.1819 on a daily basis, the rise may continue and we will see the resistance levels at 1.2046 and 1.2214. On the other hand, if the price drops below 1.1819, the next support level will be at 1.1744.

Support : 1.1819 - 1.1744 - 1.1658

Resistance : 1.2046 - 1.2214 - 1.2391

GBP/USD:

Last week, the Bank of England indicated that they are considering using negative interest rates as the central bank prepares for the possibility the U.K. government fails to reach a trade deal with the European Union by the end of this year.

The GBPUSD pair closed last week below the 1.2947 main support level. If the pair stays below 1.2947 on a four hourly basis, we will see the key support level at 1.2838 again. On the other hand, if the currency goes beyond 1.2947, the next resistance level is holding at 1.3046

Support: 1.2838 - 1.2768 - 1.2671

Resistance: 1.2947 - 1.3046 - 1.3136

EUR/JPY:

The Bank of Japan kept its key interest rate at -0.1% and left its asset purchases unchanged, as widely expected last week.

The EURJPY pair showed a downward movement and closed last week below the 11.24.24 main resistance level. If the currency stays below 124.24 on a four hourly basis, the selling pressure may continue and we will watch the support level at 123.14. On the other hand, If the pair rises above 124.24, the next resistance level is holding at 125.07

Support: 123.14 - 122.37 - 121.59

Resistance: 124.24 - 125.07 - 125.85 

CRUDE OIL:

The Crude Oil Price showed an upward movement and moved up above the 40.70 major support level. If the rise continues above 40.70 on a daily basis, we will face 43.88 as the main resistance level. On the downside, If the price drops below 40.70, the key support level can be found at 37.78

Support: 40.70 - 37.78 - 34.34

Resistance: 43.88 - 47.63 - 51.08

20 Sep 20 (Sun)

06:39 pm


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