Previous Week
The Yen, gold has shown a minor weakness as fear over coronavirus eased. China has recorded 2656 cases on Sat and the total number of infected people exceeded 37000. It has killed more than 900 and crossed more people than SARS.
DXY has halted its weak trend and jumped more than 100 pips from a low of 97.35. The index is trading above 98.60 levels and a jump till 99.25/99.60 likely. It is currently trading around 98.62
US economy has added 225000 jobs in Jan vs forecast of 163000, unemployment slightly ticked up by 3.6% vs 3.5%. Average hourly earnings declined to 0.2% compared to 0.3%. The US ISM manufacturing index came at 50.9% much better than the forecast of 48.5 and services PMI at 55.5 vs 55.1.
The precious metal has recovered slightly more than $20 from the previous week's low of $1549. Any break above $1588 confirms bullish continuation, a jump till $1600/$1611 likely.
US 10 year bond yield has recovered more than 2.5% after a more than 7% decline. The spread between US 10- year and 2 years has narrowed to 18.3 bps from 35.7 bps.
Weekly Technical:
EURUSD:
Major trend reversal level- 1.0880
Near term support- 1.0880/1.0835
Near term resistance – 1.1000/1.1065
USDJPY:
Major trend reversal level- 108.30
Near term support- 109.50/108.75
Near term resistance – 110.30/111
USDCHF
Major trend reversal level- 0.9840
Near term support- 0.9740/0.9670
Near term resistance – 0.9840/0.9900
USDCAD
Major trend reversal level- 1.3385
Near term support- 1.3260/1.3180
Near term resistance – 1.3385/1.3435
Gold
Major trend reversal level- $1611
Near term support- $1545/$1530
Near term resistance – $1611/$1640
WTI Crude
Major trend reversal level- $53.17
Near term support- $50/$48
Near term resistance – $51.61/$53.17
Major Economic events for the week
Fed Chairman Powell testifies – Tuesday (3:00 pm)
US CPI m/m - Thursday (1:30 pm GMT)
US Core retail sales – Friday (1:30 pm GMT)
