Weekly Technical Analysis For August 9th to 13th, 2021

Focus On US CPI Inflation This Week 

EUR/USD: Last Friday, July US non-farm payrolls printed 943K versus 870K estimate. US unemployment rate dropped to 5.4% versus the 5.7% estimate. US dollar showed an upward movement against all major currencies after a strong Jobs Report. 

Dallas Fed President Richard Kaplan said that a gradual and bounced tapering should start soon.

Concerns have been growing that the fast-spreading delta variant of the Covid-19 virus could hamper a global economic revival that is already showing pockets of weakness.

US Pres. Biden gave a speech on Friday and said that Jobs's data proves that his approach to the economy is working.
He added his comments are not one of celebration. There is still more hard work to be done. The New Delta wave of Covid 19 will be very different to deal with given vaccinations.

Looking ahead, the U.S. consumer price index and the producer price index will release Wednesday and Thursday, respectively.

Consumer prices are expected to have risen 0.5% last month and 5.3% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to be 4.3% on a year-over-year basis.

Economists predict that the producer price index rose by 0.6% last month. On the other hand, Core PPI is expected to have risen by 0.5%. A higher-than-expected reading should be taken as positive for the greenback.

In the EU area, focus on the German Consumer Price Index on Wednesday. On a year-on-year basis, the Eurozone CPI is expected to rise to 3.8% from 2.3%. A higher-than-expected reading will be positive for the single currency.

Keep your eye on the 1.1744 main support level in the EURUSD pair. If the pair stays above 1.1744, on a four-hourly basis, we will see 1.1819 as a resistance level. On the downside, if the price drops below 1.1744, we will follow the next support level at 1.1658.

Support: 1.1744 - 1.1658 - 1.1589

Resistance : 1.1819 - 1.1867 - 1.1919

GBP/USD: The UK is to release figures on June GDP growth on Thursday. The June numbers will add to data already released, giving a full picture of how the economy performed in the second quarter.

The GBPUSD pair moved down below the 1.3883 main resistance level. As long as the pair stays below 1.3883, on a four-hourly basis, we will follow 1.3784 as a daily support level. Otherwise, if the price rises above 1.3883, the next daily resistance level will be at 1.4005

Support: 1.3784 - 1.3688 - 1.3599

Resistance: 1.3883 - 1.4005

USD/JPY: Focus on the 110.36 major resistance level in the USDJPY pair. As long as the pair stays below 110.36 on a daily basis, we will see the support levels at 109.72 and 109.39. On the other hand,  if the price goes beyond 110.36, the next resistance level will be placed at 110.93.

Support: 109.72 - 109.39 - 109.09

Resistance: 110.36 - 110.93

GOLD: The GOLD price closed last week just above the 1763 main support level. As long as the price stays above 1763, on a four-hourly basis, we will see the daily resistance levels at 1785 and 1805. On the downside, if the price breaks down below 1763, the next support level will be at 1745.

Support: 1763 - 1745 - 1736

Resistance: 1785 - 1805 - 1829

08 Aug 21 (Sun)

07:53 pm


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