Weekly Technical Analysis For December 13th to 17th, 2021

Get Ready For FED, ECB And BOE Rate Decisions This Week

EUR/USD: Last week,US CPI for November printed near expectations at 0.8% m/m, 6.8% y/y. This is the highest reading in the headline CPI report since 1982.

The market saw optimism in last week over the Omicron variant of the new coronavirus may not be as bad as feared.

BioNTech and Pfizer said on Wednesday a three-shot course of their COVID-19 vaccine was able to neutralise the new Omicron variant in a laboratory test and they could deliver an Omicron-based vaccine in March 2022 if needed.

Looking ahead, watch out for on the Fed Monetary Policy Meeting this week. The Federal Reserve is expected to leave its benchmark interest rate unchanged. The meeting will give markets new guidance about monetary policy outlook. 

All eyes will be on Powell’s comments and the press conference that follows is what his current view on inflation

Additionally, Fed is expected to discuss accelerating the wind-down of the central bank $120 billion a month pandemic-era asset purchase program.

In addition to that, this week's calendar also features U.S. data on PPI inflation, retail sales and industrial products numbers. 

Moreover, the European Central Bank will announce its rate decision and forward guidance on Thursday. 

The ECB is expected to announce that its €1.85 trillion PEPP pandemic stimulus scheme will end in March, but the fourth wave of the pandemic and the new Omicron variant have clouded the outlook for the euro zone economy.

The EURUSD pair is now trading below the 1.1307 main resistance level. As long as the pair trades below 1.1307, on a four-hourly basis, we will face 1.1237 as the support level. On the upside, if the price rises above 1.1307, the next resistance level will be at 1.1365

Support: 1.1237 - 1.1165

Resistance: 1.1307 - 1.1365 - 1.1421

GBP/USD: The pound dropped to a year low on Wednesday after British Prime Minister Boris Johnson imposed tougher COVID-19 restrictions in England, ordering people to work from home, wear masks in public places and use vaccine passes.

In the upcoming week, the Band of England will announce their final monetary policy decisions of the year on Thursday. The BoE is expected to hold off on hiking rates until February with uncertainty over the Omicron Covid-19 variant

Pay attention to the 1.3231 key support level in the GBPUSD pair. As long as the GBPUSD pair stays above 1.3231, on a four-hourly basis, we will follow the 1.3313 resistance level. Otherwise, if the price drops below 1.3231, the next support level will be at 1.3136

Support : 1.3231 - 1.3136 - 1.3046

Resistance : 1.3313 - 1.3392

USD/CHF: The USDCHF pair moved up above the 0.9186 main support level. As long as the pair stays above 0.9186 on a four-hourly basis, we will see a resistance level at 0.9322. On the other hand, If the pair drops below 0.9186, the next support level will be at 0.9064.

Support: 0.9186 - 0.9130 - 0.9064

Resistance: 0.9322 - 0.9437

GOLD: The GOLD price closed last week below the 1785 key resistance level. As long as the price stays below 1785, on a four-hourly basis, we will see the daily support level at 1763. On the upside, if the price moves up above 1785, the next support level will be at 1805.

Support: 1763 - 1745 - 1736

Resistance: 1785 - 1805 - 1829

14 Dec 21 (Tue)

04:03 am


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