Weekly Technical Analysis For November 9th to 12th, 2020

Focus On US Inflation Numbers This Week

EUR/USD:  

The US Dollar has weakened over the past week. The market has taken a Biden win as a strong positive for US stocks. Risk currencies have also taken the upcoming change in US administration as a strong positive. 

The impactful news item over the weekend was the news of Biden's election win. A big congrats to Kamala Harris, the first female vice-president of the United States.

Last Thursday, FOMC left the policy interest rate and pace of asset purchases unchanged. This was widely expected with the US central bank likely opting to stay sidelined this meeting in light of the November 2020 election. Fed Chair Powell said we are strongly committed to use our tools and more can be done if needed.

Looking ahead, keep your eye on the CPI and PPI inflation figures in the US. Consumer prices are expected to have risen by 0.2% in the last month and 1.3% over the prior year, according to estimations. Excluding the cost of food and fuel, core inflation is projected to rise to 1.7% on a year-over-year basis.

The Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. The US PPI is predicted to rise to 0.4% on a year on year basis.

In the Eurozone, the gross domestic product data will be released on Friday. Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. The consensus forecast is the eurozone GDP fall -3.8% in the second quarter. This would lead to an annual realization of -4.3%.

The EURUSD pair showed an upward movement and closed last week above the main support level of 1.1819. As long as the price stays above 1.1819, on a daily basis, the upward movement may gain more power and we will see 1.2064 as a resistance level. On the downside, if the price drops below 1.1819, we will follow the next support level at 1.1744.

Support : 1.1819 - 1.1744 - 1.1658 

Resistance : 1.2046 - 1.2214 - 1.2391

GBP/USD:

The GBPUSD pair rose last week and moved up above the 1.3136 main support level. If the upward movement continues above 1.3136, the main resistance level will be at 1.3231 and 1.3313. In contrast, if the pair drops below 1.3136, the next daily support level can be found at 1.3046.

 Support:  1.3136 - 1.3046 - 1.2947

 Resistance: 1.3231 - 1.3313 - 1.3392

EUR/JPY:

The EURJPY pair closed last week above the daily level of 122.37. As long as the price stays above 122.37, on a daily basis, we will follow 123.14 and 124.24 as the resistance levels. On the other hand, if the price drops below 122.37, the next support level can be seen at 121.59.

Support : 122.37 - 121.59 - 120.75

Resistance : 123.14 - 124.24 - 125.07

GOLD:  

The Gold Price skyrocketed last week and moved up above the 1932 main support level. As long as the price stays above 1932, on a daily basis, we will see the resistance levels at 1964 and 1995. On the downside, if the price breaks down below 1932, the next support level will be at 1904.

Support: 1932 - 1904 - 1873

Resistance: 1964 - 1995 - 2032
 

08 Nov 20 (Sun)

07:53 pm


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