Weekly Technical Analysis For January 31st to February 4th, 2022

Pay Attention To US Nonfarm Payrolls This Week

EUR/USD: The U.S. economy notched its strongest growth in nearly four decades in 2021 after the government pumped trillions of dollars in COVID-19 relief. The economy grew 5.7% in 2021, the strongest since 1984, as the government provided nearly $6 trillion in pandemic relief.

Last week, the Fed indicated it was likely to raise U.S. interest rates in March, as widely expected, and reaffirmed plans to end its pandemic-era bond purchases that month before launching a significant reduction in its asset holdings

Fed Chair Jerome Powell told reporters on Wednesday after a two-day policy meeting that the economy no longer needs sustained high levels of monetary policy support, and that it will soon be appropriate to raise rates

In the upcoming week, the US Jobs Report will be announced on Friday. US Nonfarm Payrolls are expected to rise 155K in January from 199K in the previous month. The Unemployment Rate is expected to stay at 3.9%. Average hourly earnings are expected to come out 5.2%, year on a year basis.

Keep your eye on ECB Interest Rate Decision on Thursday. Economists are not expecting any changes to monetary policy from the ECB this week.

Additionally, In the eurozone area, we will closely monitor fourth quarter GDP and inflation data for January. Eurozone GDP is expected to come out at 4.7%, above the previous number of 3.9%.

The EURUSD pair was under selling pressure after FOMC meeting. As long as the pair stays below 1.1165, on a four-hourly basis, we will see 1.1114 as the support level. On the upside, if the price rises above 1.1165, the next resistance level will be at 1.1237.

Support: 1.1114 – 1.1052 – 1.1007

Resistance: 1.1165 – 1.1237 – 1.1307

GBP/USD: We are closely watching the Bank of England rate decision. The BOE is expected to hike rates by another 0.25% at its upcoming policy meeting on Thursday.

The GBPUSD pair closed last week just above 1.3392 main support level. As long as the GBPUSD pair stays above 1.3392, on a four hourly basis, we will follow 1.3517 and 1.3599 resistance levels. Otherwise, if the price drops below 1.3392, the next resistance level will be at 1.3313.

Support: 1.3392 - 1.3313 - 1.3231

Resistance: 1.3517 - 1.3599 - 1.3688

EUR/JPY: The EURJPY pair is moved up above the 128.39 key support level. As long as the price stays above 128.39 on a four-hourly basis, we will follow the key resistance level at 129.33. On the downside, if the pair drops below 128.39, the next major support level will be at 127.52.

Support: 128.39 - 127.52 - 126.69

Resistance:  129.33 - 130.23 - 131.26

GOLD: The Gold Price closed last week 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

30 Jan 22 (Sun)

03:40 pm