Weekly Technical Analysis For December 7th To 11th, 2020

Focus On US CPI inflation And ECB Rate Decision This Week


The US Jobs Report is a disappointing read throughout last week.  US payrolls rose just 245k versus 460k consensus, the unemployment rate edged down to 6.7 percent, the U.S. Bureau of Labor Statistics reported last Friday.

The US Dollar was under selling pressure last week as investors continue to shift to risky assets and higher returns. Hopes for fresh fiscal stimulus and a vaccine kept global stocks well bid and the dollar weak.

Looking ahead, focus on the US CPI inflation figures on Thursday. Consumer prices are expected to come out at 0.1% last month and 1.1% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to be 1.5% on a year-over-year basis.

Watch out for US Producer Price Index on Friday. The US PPI is predicted to come out at 0.8% year-on-year basis. While the Core PPI inflation is expected to rise to 1.5% from 1.1%. A higher than expected reading should be taken as positive for the US Dollar.

In addition to the US data, the European Central Bank will announce its rate decision and forward guidance on Thursday. European Central Bank President Christine Lagarde is expected to announce another expansion of its stimulus package.

The EURUSD pair showed an upward movement above the 1.2046 major support level. If the upward movement continues above 1.2046, we will see 1.2214 as a resistance level. On the downside, if the price drops below 1.2046, we will follow the next support level at 1.1819.

Support : 1.2046 - 1.1819 - 1.1744 

Resistance : 1.2214 - 1.2391 - 1.2536


The GBPUSD pair closed last week above the 1.3392 main support level. As long as the pair stays above 1.3392 on a four hourly basis, the upward movement may gain more momentum and the key resistance levels can be found at 1.3519 and 1.3599. On the other hand, if the pair falls below 1.3392, the next support level is holding at 1.3313 again.

Support: 1.3392 - 1.3313 - 1.3231

Resistance: 1.3517 - 1.3599 - 1.3688


The EURJPY pair jumped up from the 124.24 mani support level and reached the 126.69 main resistance level. However, if the currency stays below 126.59 on a four hourly basis, we will watch the support levels at 125.85 and 125.07. On the other hand, If the pair rises above 126.69, the next resistance level is holding at 127.52.

Support: 125.85 - 125.07 - 124.24

Resistance: 126.69 - 127.52 - 128.39


Gold jumped back up above the 1763 support level and closed last week above the 1829 main level. As long as the price stays above 1829, on a four hourly basis, we will see the daily resistance level at 1854. On the downside, if the price breaks down below 1829, the next support level will be at 1805.

Support: 1829 - 1805 - 1785

Resistance: 1854 - 1873 - 1904 

06 Dec 20 (Sun)

06:48 pm

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