EURUSD, GBPUSD, USDJPY
Weekly Forex Analysis
(January 13 - January 17, 2020)
Hey! This is Philip with our new weekly outlook of the Forex market.
This is only a partial preview of the analysis. Go to the link below to read the Full Weekly Forex Analysis For FREE.
US Dollar Fundamental Outlook – Inflation, Retail Sales, FOMC Speakers On The Calendar This Week
The Dollar rallied last week after President Trump’s speech on Iran, which the market took as positive and de-escalating of the recent Iran-US tensions. US stock markets rallied to new all-time highs as a result, and the Dollar also climbed higher, partly helped by an important technical support zone. Furthermore, the solid numbers from the NFP/jobs reports last Friday helped to keep the Dollar steady for the week.
The US and China are set to sign the phase 1 trade deal on Wednesday, and that is another aspect the market is feeling positive about. However, geopolitical risks remain elevated and could escalate again. It is another factor in focus at the moment that will impact the Dollar and the whole Fx market. Although, tensions and escalations should keep the Dollar modestly firm, the big reaction in such scenarios is likely to be in safe-haven currencies such as the Yen (JPY) and the Swiss Franc
(CHF).
The US reports CPI inflation and retail sales data this week. Traders will be looking for healthy (or near-consensus) numbers to possibly support the Dollar further higher.
In addition, several FOMC members will speak throughout the week, and any comments from them about Fed interest rates can impact USD pairs. The Philly Fed Manufacturing Index and UoM Consumer Sentiment will also be watched.
Euro Fundamental Outlook – Traders Watching ECB Meeting Accounts In A Quiet Week
A quiet week is on the EUR calendar as traders are slowly getting accustomed to normal trading conditions after the holiday season.
The ECB’s Monetary policy accounts from their last meeting will be published on Thursday. Other than that final CPI reports and mostly second-tier data is on the calendar, but is unlikely to be market moving. Instead, Euro traders will be preparing for the week after this one, which is packed with market-moving events – including the January 23 ECB meeting.
Given this, the Euro currency will likely be taking its direction from developments elsewhere for this week, and possibly maybe even geopolitics (this being in close focus amid recent tensions).
Explore This Unique Offer
EURUSD Technical Outlook:
The EURUSD pair hasn’t moved much in the past few weeks. The pair is still trading inside the small rising channel on the daily timeframe, which we discussed here in December. It was rejected twice at the 1.12
resistance zone, which has solidified this resistance and makes it look more likely that this small upward channel will be broken to the downside.
Additionally, this 1.12 resistance area coincides with the weekly falling resistance trendline of the 18-month bearish channel.
To the downside, the first support is holding at 1.11. The support trendline is standing here, but once broken, it will open the way toward the more important support area at 1.10.
Find the rest of the weekly analysis (GBPUSD & USDJPY outlook) 100% FREE, at our website below:
Also, if you haven't already, be sure to also check out our yearly analysis of the FOREX market for 2020. Includes the same pairs (EURUSD, GBPUSD, USDJPY) Find it 100% FREE
here.
If you have any questions or feedback, don't hesitate to reply to this email.
High Risk Warning: Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
Any opinions, news, research, predictions, analyses, prices or other information contained in this newsletter is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
|
|
|
|
