Looking ahead, focus on the US inflation figures on Thursday. Consumer prices are expected to come out at 0.1% last month and 1.1% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to be 1.5% on a year-over-year basis.
Watch out for US on Friday. The US PPI is predicted to come out at 0.8% year-on-year basis. While the Core PPI inflation is expected to rise to 1.5% from 1.1%. A higher than expected reading should be taken as positive for the US Dollar.
In addition to the US data, the European Central Bank will announce its and forward guidance on Thursday. ECB President Lagarde is expected to announce another expansion of its stimulus package.
EUR/USD: The pair showed an upward movement above the 1.2046 major support level. If the upward movement continues above 1.2046, we will see 1.2214 as a resistance level. On the downside, if the price drops below 1.2046, we will follow the next support level at 1.1819.
Support : 1.2046 – 1.1819 – 1.1744
Resistance : 1.2214 – 1.2391 – 1.2536
BP/USD: The pair closed last week above the 1.3392 main support level. As long as the pair stays above 1.3392 on a four hourly basis, the upward movement may gain more momentum and the key resistance levels can be found at 1.3519 and 1.3599. On the other hand, if the pair falls below 1.3392, the next support level is holding at 1.3313
Support: 1.3392 – 1.3313 – 1.3231
Resistance: 1.3517 – 1.3599 – 1.3688
EUR/JPY: The pair jumped up from the 124.24 mani support level and reached the 126.69 main resistance level. However, if the currency stays below 126.59 on a four hourly basis, we will watch the support levels at 125.85 and 125.07. On the other hand, If the pair rises above 126.69, the next resistance level is holding at 127.52.
Support: 125.85 – 125.07 – 124.24
Resistance: 126.69 – 127.52 – 128.39
Gold: jumped back up above the 1763 support level and closed last week above the 1829 main level. As long as the price stays above 1829, on a four hourly basis, we will see the daily resistance level at 1854. On the downside, if the price breaks down below 1829, the next support level will be at 1805.
Support: 1829 – 1805 – 1785
Resistance: 1854 – 1873 – 1904
GBP/JPY: The pair stayed above the daily support level of 139.24. As long as the pair sustains above 139.24 on a daily basis, we will see the resistance level at 140.59. On the other hand, if the pair fall back below 139.24, the next support level will be placed at 138.25
Support: 139.24 – 138.25 – 136.98
Resistance: 140.59 – 142.62 – 143.69
EUR/GBP: Focus on the 0.9026 main support level in the pair. As long as the pair stays above 0.9026, we will follow the resistance levels at 0.9060 and 0.9099. On the downside, if the price moves down below 0.9026, the next support level will be at 0.8992
Support: 0.9026 – 0.8992 – 0.8950
Resistance: 0.9060 – 0.9099 – 0.9148