Looking ahead, the economic calendar will bring an update on the health of the US economy, with reports on US Housing Starts, Building Permits, Crude Oil Inventories and Existing Home Sales.
US Housing Starts will be announced Thursday and it is a critical indicator of economic strength in the US. The market expects housing starts to rise to 1.560 mln in December from 1.547 mln.
US Building Permits as another key indicator of demand in the housing market measure the change in the number of new building permits issued by the government. It is expected to come out at 1.1.604 mln in December.
In addition to the US data, the European Central Bank will announce its rate decision and forward guidance on Thursday. European Central Bank announced extra stimulus in December, but the economic outlook still under pressure. We might see a response from ECB for the economic risk posed by the coronavirus threat.
Moreover, focus on the Consumer Price Index in the Eurozone. On a year-on-year basis, the Eurozone CPI is expected to stay at -0.3%. A lower than expected reading will be negative for the single currency.
EUR/USD
The EUR/USD pair showed a downward movement below the 1.2214 main resistance level. We are closely watching the 1.2046 main support level. As long as the pair stays above 1.2046, on a daily basis, the downward movement may pause, we will see 1.2214 as a resistance level again. 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
The GBP/USD pair showed a downward movement and dropped below the 1.3599 main resistance level. If the pair stays below 1.3599 on a daily basis, the downward movement may continue and we will see the support levels at 1.3517 and 1.3392. On the other hand, If the pair rises above 1.3599, the next resistance level is holding at 1.3688
Support: 1.3517 - 1.3392 - 1.3313
Resistance: 1.3599 - 1.3688 - 1.3784
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 at 1854. 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
EUR/GBP
The EUR/GBP pair is now trading above the 0.8893 main level. As long as the pair stays above 0.8893 on a daily basis, we will see the resistance level at 0.8950. On the other hand, if the price drops below 0.8950, the next support level will be at 0.8846.
Support: 0.8893 - 0.8846 - 0.8796
Resistance: 0.8950 - 0.8891 - 0.9021
GBP/JPY
The GBP/JPY pair is currently trading above the key support level of 140.59. As long as the pair stays above 140.59 on a daily basis, the upward movement may gain more momentum, we will see the resistance level at 142.62. On the other hand, if the pair fall back below 140.59, the next support level will be placed at 139.24
Support: 140.59 - 139.24 - 138.25
Resistance: 142.62 - 143.69 - 145.24
Crude Oil
The Crude Oil Price moved up above the 52.19 major support level. If the price stays above 52.19, on a four hourly basis, we will face 53.51 as the main resistance level. Otherwise, If the price drops below 52.19, the key support level can be found at 51.08
Support: 52.19 - 51.08 - 47.63
Resistance: 53.51 - 54.68 - 56.40
Silver
We are closely watching the main support level of 24.39 in the Silver Price. As long as the price stays above 24.39 on a daily basis, we will see 27.87 as a resistance level. Otherwise, if the price shows a downward movement below 24.39, we will follow the next support level at 21.26.
Support: 24.39 -21.26 - 19.55
Resistance: 27.87 - 31.35