Published On: Sun, Dec 3rd, 2017

Keep Your Eye On November’s U.S. Jobs Report

Weekly Technical Analysis For December 4th to 8th, 2017

: The remained under pressure last week, as investors looked to progress on tax reform and news that Flynn will testify against Trump

US Senate Republicans have enough votes to pass tax cut legislation last Friday. That would have marked a significant step toward realizing a fiscal boost that markets expect will drive inflation and force the Fed into a steeper rate hike cycle in 2018.

Additionally, Former national security advisor Michael Flynn is now reportedly ready to testify that directed him to make contact with during the 2016 election campaign. took a hit on news that Flynn will testify against Trump.

In the coming week, traders will focus on November’s US . Jobs report expected to 198K jobs created after rising 261K the previous month. Unemployment Rate is expected to remain flat at 4.1% compared to a month ago. Average hourly earnings will be another release to be followed closely at the same time and are expected to ease 0.3% from 0.5% a previous month. A rate hike looks all but fully priced in for this month’s FOMC . However, an upbeat employment report will point to an improving economy and support the case for higher interest rates in 2018.

The EUR/USD pair dropped to the 1.1812 daily support level and then bouched back up above 1.1884. As long as the price stays above the 1.1884 key level, on a four-hourly basis, the Euro may gain more value against the greenback. At this point, we will follow 1.1968 and 1.2052 as resistance levels. On the other hand, if the price drops below 1.1884, the next daily support level will be at 1.1812. However, as long as the price remains above 1.1812 on a daily basis, the downward movement may be limited.

Support: 1.1884 &; 1.1812 &; 1.1769

Resistance: 1.1968 – 1.2052

: The GBP/USD pair has been rising for four weeks. Especially this week, the pair skyrocketed after EU and UK said to reach agreement on Brexit divorce bill. The final total will reportedly be around €50 billion.

In order for the rise to continue, it needs to rise and sustain above 1.3485 on a daily basis. At this point, the next resistance level can be found at 1.3555 again. Otherwise, if the price pullbacks below 1.3485, we will face 1.3432 and 1.3370 as support levels.

Support: 1.3432 – 1.3370 – 1.3305

Resistance: 1.3485 – 1.3555 – 1.3632

: US Dollar Index took a hit on news that Flynn will testify against Trump last Friday. The USD/JPY pair closed last week below 112.46. As long as the price stays below 112.46, on a four-hourly basis, the bullish action may be limited and we will follow 112.08 and 111.66 as support levels. On the other hand, If the price moves up 112.46, the next resistance level can be found at 112.94.

Support: 112.46 – 112.08 – 111.66

Resistance : 112.94 – 113.63 – 114.11

: The Gold price has been uncertain and it has tightened between 1265 and 1291 for six weeks. In the event that, the price shows a downward movement, we will follow again 1276 and 1272 as key support levels. On the other hand, if the price moves up above 1283, the next resistance level will be at 1291.

Support:: 1276 – 1272 – 1265

Resistance: 1283 – 1291 – 1307

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