Weekly Technical Analysis For July 5th to 9th, 2021

All Eyes Will Be On FOMC And ECB Meeting Minutes This Week

EUR/USD: The US Dollar has strengthened broadly since FOMC surprised markets last month by signaling it could tighten policy earlier than expected.

Last Friday, the data showed that U.S. nonfarm payrolls beat expectations, increasing by 850K jobs last month after rising 583K in May. However, the US Unemployment rate rose to 5.9% from 5.8% in May.

In the upcoming week, the minutes of the FOMC meeting due Wednesday is expected to provide investors with an insight into the Fed’s thinking on monetary policy.

In the last meeting, the Federal Reserve unexpectedly brought forward its projections for interest rate hikes into 2023

U.S. Federal Reserve was taking a more hawkish stance than expected and planning for two interest rate increases of 25 basis points in 2023, a year earlier than expected. Additionally, Fed Chair Powell indicated that the members of the FOMC had begun the conversation on stopping the bank’s massive bond-buying program.

Moreover, The ECB is to release its latest meeting minutes on Thursday. In the last meeting, ECB left key rates unchanged in May monetary policy meeting, as expected.

The European Central Bank raised its growth and inflation outlooks but promised to keep ample stimulus flowing, fearing that a retreat now would accelerate a worrisome rise in borrowing costs and choke off the recovery.

The EURUSD pair closed last week below the 1.1867 main support level. As long as the EURUSD pair stays below 1.1867, on a four-hourly basis, the selling pressure may continue and we will follow 1.1819 and 1.1744 as the support levels. On the upside, if the price rises above 1.1867, the next resistance level will be at 1.1919

Support: 1.1819 - 1.1744 - 1.1658

Resistance : 1.1867 - 1.1919 - 1.1994

GBP/USD: Keep your eye on the daily level of 1.3784 in the GBPUSD pair. If the price stays above 1.3784 on a four-hourly basis, we will see 1.3883 as the resistance level. Otherwise, if the pair drops below 1.3784, we will follow the next support level at 1.3688
 
Support: 1.3784 - 1.3688 - 1.3599

Resistance: 1.3883 - 1.4005 - 1.4329

USD/JPY: The USDJPY pair closed last week above the 110.93 main support level. As long as the price stays above 110.93 on a daily basis, we will face 111.52 as the main resistance level again. Otherwise, if the price drops below 110.93 we will follow the next support level at 110.36.

Support : 110.93 - 110.36 - 109.72

Resistance: 111.52 - 112.16 - 112.59

GOLD: The Gold Price moved up above the 1785 major support level. As long as the price stays above 1785 on a four-hourly basis, we will see the daily resistance level at 1805. On the downside, if the price breaks down below 1785, the next support level will be at 1763

Support: 1785 - 1763 - 1745

Resistance: 1805 - 1829 - 1854

04 Jul 21 (Sun)

06:13 pm