Weekly Technical Analysis For November 30th to December 4th, 2020

Get Ready For US Nonfarm Payrolls, Powell and Mnuchin's Testimony 

EUR/USD:

The US Dollar was under pressure last week with traders expecting large-scale stimulus from the new US administration to combat the Covid-19 pandemic.

Optimism over several COVID-19 vaccine developers, including Pfizer and Moderna announcing positive results for their offerings over the last two weeks, put the dollar under pressure as investors sought risker assets.

In the Eurozone, the ECB Meeting Minutes showed last week policymakers in agreement that complacency is not an option as Europe continues to struggle through the second wave of COVID-19 cases and beginning to prepare for more stimulus measures.

Looking ahead, focus on the US Jobs Report on Friday. US Nonfarm Payrolls are expected to ease 500K in November from 638K. The Unemployment Rate is expected to drop to 6.8% from 6.9%. Average hourly earnings will also be significant and are expected to come out 4.2%, year on year basis.

In addition to that, this week's calendar also features U.S. data on Pending Home Sales, ISM Non-Manufacturing PMI, and Factory Orders as well as Crude Oil Inventories

Moreover, Fed Chairman Jerome Powell and Treasury Secretary Steven Mnuchin are to testify before the Senate Banking Committee and the House Financial Services Committee in the upcoming week.

If we look at the Eurozone, we will closely watch the Consumer Price Index. On a year-on-year basis, the Eurozone CPI is expected to be -0.2%. 

The Euro has extended gains versus the US Dollar above the major support level of 1.1819. If the upward movement continues, we will see 1.2064 as a resistance level. On the downside, if the price falls 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 dropped below the 1.3313 main resistance level. As long as the price stays below 1.3313, on a daily basis, the main support levels will be found in 1.3231and 1.3136. Otherwise, if the price goes beyond 1.3313, we will see 1.3392 as the next resistance level. 

Support: 1.3231 - 1.3136 - 1.3046

Resistance: 1.3313 - 1.3392 - 1.3517

EUR/JPY:  

The EURJPY pair moved back above the 124.24 main support level. As long as the pair stays above 124.24 on a four hourly basis, we will follow the key resistance level at 125.07. On the downside, if the pair moves down below 124.24, the next major support level will be at 123.14

Support: 124.24 - 123.14 - 122.37

Resistance: 125.07 - 125.85 - 126.69

GOLD:  

The positive news of the vaccines increased their risk appetites. In consequence, the safe-haven demand for gold declined last week. 

Keep your eye on the 1785 main support level in the Gold Price. As long as the price stays above 1785, on a four hourly basis, the downward movement may be limited and we will see the daily resistance level at 1805. On the downside, if the price breaks down below 1785, the next support level will be at 1763.

Support: 1785 - 1763 - 1745

Resistance: 1805 - 1829 - 1854

29 Nov 20 (Sun)

05:34 pm


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