Weekly Technical Analysis For February 24th to 29th, 2020
Last week’s FOMC Meeting Minutes showed there was a firm consensus among members to keep rates on hold until there was a significant change to the U.S. economic outlook.
According to the FOMC minutes, the outbreak of the coronavirus was flagged as a new risk to the global growth outlook, which Fed members said warranted close watching at present, suggesting that the current pace of policy remains appropriate.
On the other hand, Economic reports have shown the euro area to be stuck in a deep slump, and coronavirus is hitting supply chains by shutting down factories in China.
Looking ahead, keep your eye on US GDP Growth on Thursday. The US fourth-quarter gross domestic product is expected to see a growth of 2.1%, as the same as the previous estimate.
We will closely watch the Core Durable Goods Orders in the US. US Durable goods orders excluding transportation in the meantime are expected to rise to 0.2% in January from a -0.1% fall in the previous month.
Moreover, the Fed’s preferred measure of inflation, the core PCE index, which calculates spending minus volatile food and energy costs, arrives along with personal spending and income numbers from the Commerce Department on Friday. The January core PCE is expected to come out at 1.7%, year on year basis.
EUR/USD: The EUR/USD pair showed an upward reaction from a nearly three-year low-level last Friday. In the event that the upward movement continues, we will see 1.0876 and 1.0930 as resistance levels. On the other hand, if the selling pressure continues, we will follow support levels at 1.0806 and 1.0728.
Support: 1.0806 – 1.0728 – 1.0623
Resistance: 1.0876 – 1.0930 – 1.0965
WTI: The Crude Oil Price is now testing the main level of 52.19. If the price goes beyond 52.19 and stays above that level, on a four hourly basis, the daily resistance level can be found at 53.51 again. On the other hand, if the price drops below 52.19, the next support level is holding at 51.08
Support: 52.19 – 51.08
Resistance: 53.51 – 54.68 – 56.40
EUR/JPY: The EUR/JPY pair falls below the 120.75 main resistance level. If the currency stays below 120.75 on a four hourly basis, the downward movement may continue and we will watch the support level at 120.13 again. On the other hand, If the pair rises above 120.75, the next resistance level is holding at 121.59.
Support: 120.13 – 119.49 – 118.73
Resistance: 120.75 – 121.59 – 122.37
BTC/USD: The Bitcoin Price is now trading above the main support level of 9696. If the BTC/USD stays above 9696, on a four hourly basis, the fall may be limited and the daily resistance level can be found at 9894 again. On the other hand, if the price drops below 9696, the next support level will be placed at 9508.
Support: 9696 – 9508 – 9321
Resistance: 9894 – 10088 – 10384
EUR/GBP: The EUR/GBP pair moved back up above the 0.8373 key level. If the pair stays above 0.8373, on a four hourly basis, the rise may continue and we will follow the main resistance level at 0.8433. On the other hand, if the price drops below 0.8373, the next support level will be at 0.8316.
Support : 0.8373 – 0.8316
Resistance : 0.8433 – 0.8488 – 0.8535