Weekly Technical Analysis For July 19th to 23rd, 2021

What To Watch For Trading This Week 

EUR/USD: The dollar stayed strong with a safe-haven bid amid rising Covid-19 cases worldwide. High U.S. inflation is also lifting expectations of an early reduction in the Federal Reserve’s $120 billion in monthly bond purchases

U.S. retail sales unexpectedly increased in June as demand for goods remained strong even as spending was shifting back to services.

The Fed Chair Jerome Powell reiterated on Thursday that rising inflation was likely to be transitory and that the U.S. central bank would continue to support the economy.

In the upcoming week, the European Central Bank will announce its rate decision and forward guidance on Thursday. The bank will keep its current policy stance unchanged, although President Christine Lagarde’s comments at her press conference will be parsed as usual for changes to the outlook.

In addition to that, the economic calendar also features reports on     Building Permit, Housing Starts, Existing Home Sales Manufacturing and Service PMI. 

US Housing Starts will be announced Tuesday and it is a critical indicator of economic strength in the US. The market expects housing starts to rise to 1.597 mln from 1.572 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 1.700 mln in June.

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

Support: 1.1744 - 1.1658 - 1.1589

Resistance : 1.1819 - 1.1867 - 1.1919

GBP/USD: Pay attention to the 1.3784 daily resistance level in the GBPUSD pair. As long as the pair stays below 1.3784, on a daily basis, we will follow 1.3688 and 1.3599 as support levels. Otherwise, if the price rises above 1.3784, the next resistance level will be at 1.3883

Support: 1.3688 - 1.3599 - 1.3517

Resistance: 1.3784 - 1.3883 - 1.4005

USD/JPY: Focus on the 110.36 major resistance level in the USDJPY pair. As long as the pair stays below 110.36 on a daily basis, we will see the support levels at 109.72 and 109.39. On the other hand,  if the price goes beyond 110.36, the next resistance level will be placed at 110.93.

Support: 109.72 - 109.39 - 109.09

Resistance: 110.36 - 110.93 -111.52

GOLD: We are closely watching the 1805 main support level in the Gold Price. As long as the price stays above 1805, on a daily basis, we will see the daily resistance level at 1829. On the downside, if the price breaks down below 1805, the next support level will be at 1785.

Support: 1805 - 1785 - 1763

Resistance: 1829 - 1854 - 1873

18 Jul 21 (Sun)

06:03 pm