Weekly Technical Analysis For January 4th to 8th, 2021

Pay Attention For US Nonfarm Payrolls And FOMC Minutes This Week

EUR/USD:

 

The Euro has benefitted from weakness in the US Dollar as the pandemic pushed the Federal Reserve to pull all the monetary policy stops including slashing rates to near-zero to cushion the pandemic-led economic fallout.

Risk sentiment has improved as optimism over a US fiscal stimulus package has boosted confidence in America, the world’s largest economy.

EU Commission regretted the US decision to extend tariffs to further EU products. The US action disrupts negotiations to find a settlement to aircraft subsidy dispute," the EU Commission further noted and said that it will engage with the new US administration at the earliest possible moment to find a solution.

In the upcoming week, all eyes will be on the US Jobs Report on Friday. US Nonfarm Payrolls are expected to ease 100K in December from 245K. The Unemployment Rate is expected to rise to 6.8% from 6.7%. Average hourly earnings are expected to come out 4.4%, year on year basis.

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

The minutes of the FOMC meeting due Thursday is expected to provide investors with an insight into the Fed’s thinking on monetary policy.

The Federal Reserve kept rates unchanged last Wednesday and signaled that near-zero rates would continue through 2023 to support the next phase of the economic recovery as the vaccine rollout gets underway.

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 EURUSD pair closed last week just above the 1.2214 main support level. As long as the pair stays above 1.2214, on a daily basis, the rise may continue and we will see 1.2391 as a resistance level. On the downside, if the price drops below 1.2214, we will follow the next support level at 1.2046.

Support : 1.2214 - 1.2046 - 1.1819

Resistance : 1.2391 - 1.2536 

GBP/USD:

The pound hit a 31-month high against the US Dollar last week after UK Prime Minister Boris Johnson’s UK-EU Brexit deal successfully passed into UK law.

In order for the upward movement to gain more power, it needs to break out and stay above 1.3688 on a daily basis. Should this occur, we will see 1.3784 as the next resistance level. Otherwise, we will follow the support levels 1.3599
 
Support: 1.3599 - 1.3517 - 1.3392 

Resistance: 1.3688 - 1.3784 - 1.3883

EUR/JPY:

The EURJPY pair moved down below the 126.69 main resistance level. 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:  

The Gold price showed an upward movement last week and moved up towards the 1904 major resistance level. However, if the price stays below 1904, on a four hourly basis, we will follow 1873 as a key support level. Otherwise, if the price rises above 1904, the next daily resistance level can be found at 1932

Support: 1873 - 1854 - 1829

Resistance:  1904 - 1932 - 1964

03 Jan 21 (Sun)

04:43 pm


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