Weekly Technical Analysis For January 25th to 29th, 2021

EUR/USD: Last week, ECB left rates unchanged. ECB's Lagarde said that risks surrounding the Euro-area outlook remain tilted to the downside but less pronounced. Underlying price pressures are expected to remain subdued. Inflation is likely to increase in the coming months as the pandemic's impact fades. 

ECB President Lagarde added that very carefully monitoring the FX rate. Q4 GDP decline will "travel into" Q1 and the 2021 forecast is still broadly valid.

In the US, Democrats last week took control of the Senate, which has increased the likelihood that new President Joe Biden’s proposed $1.9 trillion stimulus package could be passed

Looking ahead, keep your eye on the US GDP Growth on Thursday. The US fourth-quarter gross domestic product is expected to come to 4.0%.

Besides the US GDP numbers,  this week's calendar also features U.S. data on CB Consumer Confidence, Core Durable Goods Orders, New Home Sales, and Core PCE Price Index as well as Crude Oil Inventories.

In addition to that, pay attention to the Fed Monetary Policy Meeting this week. The meeting will give markets new guidance about how it plans to combat the economic fallout from the coronavirus.

The Federal Reserve kept rates unchanged last meeting 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.

The Fed is not expected to make any policy changes at the conclusion of its two-day policy meeting on Wednesday.

The EURUSD pair closed last week just above the 1.2169 main support level. If the pair stays above 1.2169, on a four hourly basis, we will see 1.2214 as a resistance level. On the downside, if the price drops below 1.2169, we will follow the next support level at 1.2093.

Support : 1.2169 - 1.2093 - 1.2046

Resistance : 1.2214 - 1.2269 - 1.2340

GBP/USD: The GBPUSD pair moved up above the 1.3688 key level. If the price stays above 1.3688, on a four hourly basis, we will see 1.3784 as the resistance level. Otherwise, if the price drops below 1.3688, we will follow the support level at 1.3599.
 
Support: 1.3599 - 1.3517 - 1.3392 

Resistance: 1.3688 - 1.3784 - 1.3883

USDJPY: Focus on the 103.79 daily resistance level in the USDJPY pair. If the pair stays below 103.79, on a daily basis, we will follow 103.48 as a support level again. Otherwise, if the price rises above 103.79, the next resistance level will be at 104.20

Support: 103.48 - 102.98 - 102.50

Resistance: 103.79 - 104.20 - 104.46

GOLD: The Gold price closed last week just below the 1854 major resistance level. As long as the price stays below 1854, on a daily basis, we will follow 1829 and 1805 as key support levels. Otherwise, if the price rises above 1854, the next daily resistance level can be found at 1873.

Support: 1829 -1805 - 1785

Resistance:  1854 - 1873 - 1904

25 Jan 21 (Mon)

07:34 am


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