Pay Attention For U.S. Nonfarm Payrolls And FOMC Minutes This Week

Weekly Technical Analysis For January 4th to 8th, 2021

All eyes will be on the US Jobs Report this week. US Nonfarm Payrolls are expected to ease 100K in December from 245K. The Unemployment Rate is expected to rise to 6.8% from 6.7%. Average hourly earnings are expected to come out 4.4%, year on year basis.

In addition to that, this week calendar also features U.S. data on FOMC Minutes, ISM Non-Manufacturing PMI, and Factory Orders as well as Crude Oil Inventories.

The minutes of the FOMC meeting due Wednesday are expected to provide investors with an insight into the Fed’s thinking on monetary policy.

The Federal Reserve kept rates unchanged and signaled that near-zero rates would continue through 2023 to support the next phase of the economic recovery as the vaccine rollout gets underway.

If we look at the Eurozone, we will closely watch the Consumer Price Index. On a year-on-year basis, the Eurozone CPI is expected to be -0.2%. 

EUR/USD: The EURUSD pair closed last week just above the 1.2214 main support level. As long as the pair stays above 1.2214, on a daily basis, the rise may continue and we will see 1.2391 as a resistance level. On the downside, if the price drops below 1.2214, we will follow the next support level at 1.2046.

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

GBP/USD: The pound rose versus the US Dollar last week after UK Prime Minister Boris Johnson’s UK-EU Brexit deal successfully passed into UK law.

In order for the upward movement to gain more power, it needs to break out and stay above 1.3688 on a daily basis. Should this occur, we will see 1.3784 as the next resistance level. Otherwise, we will follow the support levels 1.3599

Support: 1.3599 - 1.3517 - 1.3392
Resistance: 1.3688 - 1.3784 - 1.3883

EUR/JPY: The EURJPY pair moved down below the 126.69 main resistance level. If the currency stays below 126.59 on a four hourly basis, we will watch the support levels at 125.85 and 125.07. On the other hand, If the pair rises above 126.69, the next resistance level is holding at 127.52.

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

Gold: The Gold price showed an upward movement and moved up towards the 1932 major resistance level. However, if the price stays below 1932, on a daily basis, we will follow 1904 as a key support level. Otherwise, if the price rises above 1932, the next daily resistance level can be found at 1964

Support: 1904 - 1873 - 1854
Resistance: 1932 - 1964 - 1995

Silver: The Silver Price continues to rise above the main support level of 24.39. If the price extends gains above 24.39, we will see 27.87 as a resistance level. On the other hand, 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

EUR/GBP: The EURGBP pair is trading above the 0.8950 daily support level. As long as the pair stays above 0.8950 on a daily basis, we will see the resistance levels at 0.8991 and 0.9026. On the other hand, if the price drops below 0.8950, the next support level will be at 0.8893.

Support: 0.8950 - 0.8893 - 0.8846
Resistance: 0.8891 - 0.9026 - 0.9060