Weekly Technical Analysis For January 6th to 10th, 2020
US-Iran tensions dominated last week. The Commander of Iran's Revolutionary Guards, vice president of Hashd al-Shaabi group, killed in US airstrike in Baghdad. Afterward, Iran said they will suspend all limits on uranium enrichment activities. In the upcoming week, we will closely watch the market reaction to the US killing of a leading Iranian commander.
In the Eurozone, the minutes of the European Central Bank (ECB) meeting due Thursday is expected to provide investors with an insight into the European central bank’s thinking on monetary policy.
The European Central Bank kept monetary stimulus unchanged at President Christine Lagarde’s first policy meeting. Lagarde said she is different from her predecessor, Mario Draghi.
In addition to ECB Meeting Minutes, we will also focus on Eurozone Unemployment Rate on Thursday. Unemployment Rate for November is expected to stay at 7.5%.
Moreover, pay attention to US Jobs Report on Friday. US Nonfarm Payrolls is expected to see 160K jobs created after rising 266K the previous month. The Unemployment Rate is expected to stay at 3.5%. Average hourly earnings will also be significant and are expected to be 0.3% which is higher than the previous month's number of 0.2%. An upbeat employment report will point to an improving US economy and support the greenback.
Technical Analysis:
EUR/USD: The EUR/USD pair showed an upward movement and moved up above the main level of 1.1165. As long as the price stays above 1.1165 on a daily basis, the rise may gain more momentum and we will see 1.1237 as a resistance level. On the downside, if the price drops below 1.1237, we will follow the next support level at 1.1114
Support : 1.1165 - 1.1114 - 1.1052
Resistance : 1.1237 - 1.1307 - 1.1365
USD/TRY: The USD/TRY pair is moving towards the main resistance level of 5.9763. In order for the upward movement to gain more momentum, it needs to stay above 5.9763 on a daily basis. should this occur, the next resistance level will be at 6.1475. In contrast, if the price shows a downward movement, the daily support level can be found at 5.7679.
Support: 5.7679 - 5.6027 - 5.4538
Resistance: 5.9763 - 6.1475 - 6.3364
USD/ZAR: The USD/ZAR pair is now trading above the 14.1865 main support level. As long as the price stays above 14.1865, on a four hourly basis, the rise may continue and the resistance level can be seen at 14.5625. On the downside, if the pair breaks down 14.1865, we will follow the next support level at 13.8789.
Support: 14.1865 - 13.8789 - 13.2465
Resistance: 14.5625 - 14.8380 - 15.1896
EUR/GBP: The EUR/GBP pair moved up above the 0.8488 major support level. If the upward movement continues, we will see the key resistance level at 0.8629. In contrast, if the price falls below 0.8488, the main support level will be at 0.8316.
Support : 0.8488 - 0.8316
Resistance : 0.8629 - 0.8739 - 0.8796
NZD/USD: The NZD/USD pair is now trading below the daily resistance level of 0.6673. If the price stays below 0.6673 on a daily basis, the downward movement may continue and the major support level will be at 0.6612. On the other hand, if the price moves up above 0.6673, the next resistance level can be found at 0.6728.
Support: 0.6611 - 0.6543 - 0.6488
Resistance: 0.6673 - 0.6728 - 0.6799
EUR/TRY: The EUR/TRY pair showed an upward movement above the 6.6481 main support level. If the upward movement continues, we will follow 6.7197 and 6.7935 as resistance levels. On the downside, if the price falls below 6.6481, the next support level can be seen at 6.5756.
Support: 6.6481 - 6.5756 - 6.4978
Resistance: 6.7197 - 6.7935 - 6.8461