Headlines for the Economic Calendar on Wednesday
In the UK, watch out for Inflation Hearings and December's Unemployment Rate today. The Unemployment Rate is expected to stay to 4.3% as the same as the previous reading. Also, the BoE Governor Carney testify on inflation and the economic outlook before Parliament's Treasury Committee. It will be significant event for sterling.
US Existing-home sales will be released today. It measures monthly sales of previously owned single-family homes and is expected to rise to 0.9% m/m in January from -3.6% the previous number. Though it is a second tier data in terms of predictive power, a higher than expected reading would be considered positive for the greenback.
Finally, we will focus on the FOMC meeting notes from the US. It is so significant release for the FX market and this should give a more detailed explanation of January meeting. The Federal Reserve kept interest rates unchanged at 1.25% - 1.50% at the last meeting. The Fed said the inflation remained low but is expected to move up in the coming months. The Fed is scheduled to hold its next policy meeting on March. 20-21 and investors highly expect a chance of a rate hike at that meeting. We might see some fluctuations in the US dollar.
Technical Analysis:
EUR/USD: The US dollar gained move value versus the euro yesterday and the EUR/USD pair dropped to the major support level of 1.2314. As long as the pair stays above 1.2314, on a daily basis, the downward movement may be limited. At this point, we will face 1.2384 as a resistance level. On the other hand, if the pair breaks down 1.2314, the next support level can be found at 1.2232.
Support: : 1.2314 - 1.2232 – 1.2171
Resistance 1.2384 - 1.2465 - 1.2521
GBP/USD: Ahead of UK Inflation Hearings, the GBP/USD pair is now trading just below the 1.3999 key resistance level. As long as the pair stays below 1.3999, on four hourly bases, we might see some pullbacks. In this case, we will face the daily support level at 1.3880. On the other hand, if the price rises above 1.3999, the next resistance level will stand at 1.4130
Support: 1.3880 – 1.3745 – 1.3652
Resistance: 1.3999 – 1.4130 – 1.4277
Gold: The Gold price has extended loses and it is trading below the 1330 main level. As long as the yellow metal stays below 1330, on a four hourly basis, the bearish action may continue and we will follow 1319 as a support level. On the other hand, the price goes beyond 1330, the next key resistance level will be at 1352.
Support: 1319 – 1307 - 1291
Resistance: 1330 – 1352 - 1367
USD/JPY: The USD/JPY currency has shown an upward movement since at the beginning of this week and it is trading just above the 107.65 key level. If the pair sustains above 107.65 on a four hourly basis, the rise may gain more momentum. At this point, we will see resistance level at 108.78. On the other hand, if the price falls below 107.65, the next daily support level can be found at 106.46 again.
Support: 107.65 – 106.46 – 105.04
Resistance : 108.78 – 109.35 - 109.90