Weekly Technical Analysis For December 20th to 24th, 2021

Pay Attention To US GDP Numbers And PCE inflation

EUR/USD:  Last week, the Federal Reserve kept interest rates near zero, but said it would step up the tapering of bond purchases and signaled up to three rate hikes next year to curb elevated inflation. The committee said it would increase the taper of its bond purchases by $30 billion a month in January, double the $15 billion monthly pace announced in November.

The Fed signaled its inflation target has been met, and its announcement on ending the bond purchases paved the way for three quarter-percentage-point interest rate increases by the end of 2022.

Looking ahead, this week’s calendar features U.S. data on GDP growth, Durable Good Orders, and PCE inflation. 

US GDP number will be published on Wednesday. Economists predict that Q3 GDP growth is at 2.1% annualized.

Core Durable Goods Orders, excluding transportation, are expected to come out at 0.6% in November.

The US will publish updates on consumer spending and the Federal Reserve’s preferred inflation gauge on Thursday, which will give fresh insight into the strength of the economy. 

The Core PCE price index is expected to rise by 0.4% in November. Year on year, economists forecast a 4.5% rise.

The EURUSD pair closed last week just above the 1.1237 main level. As long as the pair stays above 1.1237, on a four-hourly basis, we will face 1.1307 as the support level. On the upside, if the price rise 1.1237, the next resistance level will be at 1.1165

Support: 1.1237 - 1.1165 - 1.1114

Resistance: 1.1307 - 1.1365

GBP/USD: Last week, the U.K. central bank raised the Bank Rate by 0.15 percentage points to 0.25% and committed itself to more hikes in the coming months as it attempts to bring surging retail inflation back to its target of 2%. The BoE now expects GDP to grow by 0.5% in the fourth quarter, slower than anticipated earlier.

Keep your eye on 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: We will closely watch the 1805 main resistance level in the GOLD price. As long as the price stays below 1805, on a four-hourly basis, we will see the daily support level at 1785. On the upside, if the price moves up above 1805, the next support level will be at 1829.

Support: 1785 - 1763 - 1745

Resistance: 1805 -1829 - 1854

19 Dec 21 (Sun)

03:35 pm

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