All Eyes Will Be On The Fed Rate Decision This Week

Weekly Technical Analysis For December 14th to 18th, 2020

Looking ahead, pay attention to the Fed Monetary Policy Meeting this week. The meeting will give markets new guidance about how it plans to combat the economic fallout from the coronavirus.

In the previous meeting, the Federal Reserve left its benchmark rate unchanged in the range of 0% to 0.25% and said it would keep rates within the current range until the economy has moved on from the Covid-19 crisis and is on track to meet the central bank's targets. Watch out for this week's rate decision, the market will also respond to Chairman Jerome Powell’s comments at his press conference.

Moreover, focus on the Consumer Price Index in the Eurozone. On a year-on-year basis, the Eurozone CPI is expected to be -0.3%. A lower than expected reading will be negative for the single currency.

EUR/USD: We are closely watching the 1.2046 main support level in the EURUSD pair. As long as the pair stays above 1.2046, on a daily basis, we will see 1.2214 as a resistance level. On the downside, if the price drops below 1.2046, we will follow the next support level at 1.1819.

Support : 1.2046 - 1.1819 - 1.1744
Resistance : 1.2214 - 1.2391 - 1.2536

GBP/USD: In the upcoming week, we will closely watch the BoE Rate Decision. The Bank of England looks likely to leave monetary policy unchanged after its meeting on Thursday.

The GBPUSD pair is now trading above the 1.3313 main support level. If the pair stays above 1.3313 on a daily basis, the resistance levels can be found at 1.3392 and 1.3517. On the other hand, if the pair falls below 1.3313, the next support level is holding at 1.3231

Support: 1.3313 - 1.3231 - 1.3136
Resistance: 1.3392 - 1.3517 - 1.3599

EUR/JPY: The EURJPY pair closed last week above the 125.85 main support level. As long as the price stays above 125.85, on a four hourly basis, we will follow the key resistance level at 126.69. On the downside, if the pair drops below 125.85, the next major support level will be at 125.07

Support: 125.85 - 125.07 - 124.24
Resistance: 126.69 - 127.52 - 128.39

Gold: Keep your eye on the 1829 main level in the Gold Price. As long as the price stays above 1829, on a four hourly basis, we will see the daily resistance level 1854 again. On the downside, if the price breaks down below 1829, the next support level will be at 1805.

Support: 1829 - 1805 - 1785
Resistance: 1854 - 1873 - 1904

GBP/JPY: The GBPJPY pair jumped up above the 138.25 key support level. As long as the pair stays above 138.25 on a four hourly basis, the rise may gain more momentum and we will follow 139.24 as a resistance level. On the other hand, if the pair falls below 138.25, the next support level will be placed at 136.98

Support: 138.25 - 136.98 - 136.01
Resistance: 139.24 - 140.59 - 142.62

Silver: Focus on the daily resistance level of 24.39 in the Silver Price. As long as the pair stays below 24.39, on a daily basis, we will see 21.26 as a support level. Otherwise, if the price rises above 24.39, the next resistance level can be seen at 27.87

Support: 21.26 - 19.55 - 18.61
Resistance: 24.39 - 27.87 - 31.35