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Why Is Next Week So Important For Euro?

Published 09/03/2017, 05:43 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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The Non-Farm Payrolls were published last Friday. U.S. job creation and wage inflation miss forecasts in August. The US Economy added fewer employees than expected, and the jobless rate and wages rose less than forecast. The Disappointing jobs data cuts rate hike chances. However, the US dollar rose before the market weekly-closing. The reason is that investors are hoping for hawkish comments from Fed officials next week.

Next week is also so important for the euro. The main question is that ‘Will ECB hold on QE until December?’ We will follow the ECB meeting in which the bank is expected to make some type of statement regarding their stance with Quantitative Easing (QE). The current program is set to expire in December, and next Thursday is the last set of projections that the ECB will release until that December rate decision. The central bank reportedly sees a chance that QE plan will not be fully ready until December. Any hint regarding a change in the program might create volatility in EUR/USD in next week.

Weekly Technical Analysis For September 4th to 8th 2017

EUR/USD currency rose significantly to the main resistance level of 1.2053 and found sellers and dropped toward the 1.1812 daily support level last week. As long as the price sustains above 1.1812, on a daily basis, the bullish action is most likely dominate and we will face again 1.1884 and 1.1968 as resistance levels. On the other hand, if the price breaks 1.1812 and remains below that level, the pullbacks may continue and next resistance levels will be at 1.1769 and 1.1720.

Support: 1.1812 – 1.1769 – 1.1720

Resistance: 1.1884 – 1.1968 – 1.2053

GBP/USD dropped just above the 1.2844 key support level and then bounced back up to 1.1261. In order for the bullish action gain more momentum, it needs to remain above 1.2961 on a daily basis. At this point, the next resistance level will be at 1.3007. Otherwise, if the price trades below 1.1261, we will face 1.2917 and 1.2873 as support levels.

Support : 1.2917 - 1.2873 - 1.2844

Resistance : 1.2961 – 1.3007 – 1.3050

USD/JPY showed an upward movement last week and closed last week above the 110.15 support level. In the event that the upward movement continues, we will watch 110.61 and 110.86 as resistance levels. On the other hand, if the price shows a downward movement below 110.15, the next support level will be at 109.90. As long as the price trades above 109.90, on a four-hourly basis, the bearish action may be limited.

Support : 110.15 - 109.90 - 109.35

Resistance : 110.61 - 110.86 - 111.28

Gold: Investors are worried about geopolitical tensions between the United States and North Korea last week. Safe-Havens including gold jumped sharply after North Korea fired a ballistic missile over Japan.

The gold price found buyers again from the daily support level of 1307 last Thursday. As long as the price remains above 1307 on a daily basis, the bullish action is most likely dominate. On the other hand, if the price drops below 1307, the next support level will be at 1291.

Support: 1307 - 1291 - 1283

Crude Oil price dropped to the 45.59 support level and then bounced back up and closed last week above 47.10. As long as the price stays above the 47.10 key support level, the bullish action may continue and we will face 48.48 and 50.30 as resistance levels. On the other hand, if the price falls below 47.10, the next support level will be at 45.59 again.

Support: 47.10 – 45.99 – 44.32

Resistance: 48.48 – 50.30 – 51.75

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