19 December 2019

Australian jobs report: Thursday, 00:30. Australia’s labor market badly disappointed in October with a loss of 19,000 jobs. Expectations are higher this time, with an increase of 15,000 positions and an increase from 66% to 66.1 in the participation rate – keeping the jobless rate unchanged at 5.3%.

Japanese rate decision: Thursday, early in the morning. The Bank of Japan has left the interest rate unchanged at -0.10% for several years, as it aims to lift inflation without hurting banks too much. It also aims to keep long-term lending costs muted – by targeting the ten-year yields. Haruhiko Kuroda, Governor of the BOJ, has kept the door open for more stimulus but has only tweaked the bank’s pledge to keep rates low for as much as needed. The Tokyo-based institution will likely leave rates unchanged at the last meeting of the year.

UK rate decision: Thursday, 12:00. Two members of the Bank of England surprised markets by voting for a rate cut in November. Despite deteriorating economic conditions, the BOE will likely leave interest rates unchanged at 0.75% in its last meeting of the year. Mark Carney, Governor of the Bank of England, is set to end his tenure at the end of the year but may be asked to stay on for longer. The accompanying meeting minutes are of interest, as they will shed light on the voting pattern and also set the stage for policy in 2020. The latest jobs and inflation figures may be referred to in the publication.

AUD
Australian jobs report

JPY
Japanese rate decision

GBP
UK rate decision

  • EURUSD

Update: The pair started going downwards as expected. The chart above shows that the pair is traded below a strong resistance level that is the downtrend line shown on the chart in red. Therefore, we are bearish as long as the pair is traded below it. Our first target is 1.1012.

Resistance levels: Support levels: Recommended:
▪ 1.1500
▪ 1.1400
▪ 1.1300
▪ 1.1012
▪ 1.1000
▪ 1.0950
We are bearish as long as the pair is traded below the downtrend line.
  • GBPUSD

Update: We remain the same. As could be seen on the chart above that the pair is traded below a strong resistance level that is 1.3500. Therefore, we are bearish as long as the pair is traded below it. Our first target is 1.3000

Resistance levels: Support levels: Recommended:
▪ 1.3400
▪ 1.3350
▪ 1.3300
▪ 1.3100
▪ 1.3000
▪ 1.2850
We are bearish as long as the pair is traded below 1.3500.
  • GOLD

Update: The pair is traded in a very tight range. The chart above shows that the pair is traded below a strong resistance level that is 1485. Therefore, we are bearish as long as the pair is traded below it. Our first target is 1450. On the other hand, if the level of 1485 is broken, we can go long targeting the level of 1490 followed by 1500.

Resistance levels: Support levels: Recommended:
▪ 1500
▪ 1490
▪ 1450
▪ 1445
▪ 1440
We are bearish as long as the pair is traded below the level of 1485.
  • AUDUSD

Update: Still traded below the resistance level. The chart above shows that the pair is traded below a strong resistance level that is 0.6932. In case the pair shows up bearish evidence below it, we can go short targeting the level of 0.6760 followed by 0.6700. On the other hand, breaking the level of 0.6932, can open the door for further upward movements during the week that it might reach the level of 0.7050.

Resistance levels: Support levels: Recommended:
▪ 0.7123
▪ 0.7050
▪ 0.6932
▪ 0.6755
▪ 0.6700
▪ 0.6672
We are bearish as long as the pair is traded below the level of 0.6932.
  • GBPJPY

Update: We remain the same. The chart above shows that the pair is traded below a strong resistance level that is 148.28. Therefore, we are bearish as long as the pair is traded below it. Our first target is 141.70.

Resistance levels: Support levels: Recommended:
▪ 149.00
▪ 148.50
▪ 148.28
▪ 141.70
▪ 141.00
▪ 140.50
We are bearish as long as the pair is traded below the level of 148.28.

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