Weekly Technical Analysis For October 5th to 9th, 2020

Watch Out For FOMC Meeting Minutes This Week

EUR/USD:

Last Friday, the US Non-Farm Payroll report printed at +661K, well below the +900K reading expected. The US unemployment rate drops to 7.9% from 8.4%, but average hourly earnings came in at just +0.1% m/m versus +0.5% eyed

President Donald Trump and First Lady Melania Trump have tested positive for Covid-19 last week. Trump’s condition is improving as he is being treated for COVID-19 at a military hospital, and he could return to the White House as early as Monday, where his treatment would continue, the doctors leading his treatment said today.

In the upcoming week, the minutes of the FOMC meeting due Wednesday is expected to provide investors with an insight into the Fed’s thinking on monetary policy

The U.S. Federal Reserve’s decision is not to provide additional stimulus at its latest meeting. The Federal Reserve kept rates unchanged 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. 

The economic calendar will bring an update on the health of the U.S. economy, with reports on ISM Non-Manufacturing PMI, JOLTs Job Openings Crude Oil Inventories, and Initial Jobless Claims.

In addition to that, watch out Eurogroup Meetings. Eurogroup meetings are usually attended by the Eurogroup president, Finance Ministers from euro area member states, the Commissioner for economic and monetary affairs, and the President of the European Central Bank. They discuss a range of financial issues, such as euro support mechanisms and government finances.

The EURUSD pair closed last week below the 1.1744 key resistance level. If the pair stays below 1.1744 on a four hourly basis, we will watch the support level at 1.1658 and 1.1589. On the upside, if the pair rises above 1.1744, the next resistance level can be found at 1.1819.

Support : 1.1658 - 1.1589 - 1.1507

Resistance : 1.1744 - 1.1815 - 1.2046

GBP/USD:

We are closely watching the 1.2947 main support level in the GBPUSD pair. 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

USD/JPY:

The USDJPY pair closed last week above the main level of 105.30. As long as the price stays above 105.30, on a four hourly basis, we will follow 105.58 as a resistance level. On the other hand, if the price drops below 105.30, the next support level can be seen at 105.05

Support : 105.30 -105.05 - 104.75
 
Resistance : 105.58 - 105.84 - 106.15 

CRUDE OIL:

The Crude Oil Price showed a downward movement last week and dropped below the 37.78 main level. If the downward movement continues below 37.78, the major support levels can be seen at 36.30 and 34.34. On the other hand, if the price 40.70, the next daily resistance will be at 43.88.

Support: 36.30 -34.34 - 32.88

Resistance: 37.78 - 39.27 - 40.70

04 Oct 20 (Sun)

06:37 pm


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