03 March 2020 Afternoon Session Analysis
Pound extend losses amid gloomy outlook.
The U.K pound sterling which traded against all its peers have continue to experience a major sell-off following recent weak data and odds of an interest rate cut from the Bank of England (BoE) continue to mount over growing coronavirus (Covid-19) fears. On data perspective, Markit Manufacturing PMI for the month of February came in at 51.7, missing economist forecast of 51.9. Besides that, the Bank of England (BoE) have recently stated that it will take “all the needed steps to protect the stability of the country”, which fuelling expectation that they will turn to interest rate cuts as a stimulus measure. Thus, the increasing rate cut expectation have sending the pound sterling further down. Meanwhile, as Brexit talks have started on Monday, market will continue to monitor the developments and the economic conditions in the UK to determine further direction for the pair. At the time of writing, GBP/USD fell 0.03% to 1.2764.
In the commodities market, crude oil price soars 1.18% to $47.95 per barrel as of writing following increasing optimism of OPEC. Following ongoing concerns towards the demand due to coronavirus outbreak, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, are expected to announce deeper output cuts at their meeting on March 5-6 in Vienna. On the other hand, gold price rose 0.06% to $1595.33 at the time of writing following the ongoing risk of coronavirus continue to support the risk-aversion appeal of the commodity.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Construction PMI (Feb) | 48.4 | 48.8 | – |
| 18:00 | EUR – CPI (YoY) (Feb) | 1.4% | 1.2% | – |
| 05:30
(4th) |
CrudeOIL – API Weekly Crude Oil Stock | 1.300M | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior breakout below the previous support level at 97.40. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 97.05
Resistance level: 97.40, 97.85
Support level: 97.05, 96.75
GBPUSD, Daily: GBPUSD was lower while currently testing the support level at 1.2750. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2940, 1.3165
Support level: 1.2750, 1.2585
EURUSD, Daily: EURUSD was lower while currently testing the support level at 1.1130. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1175, 1.1240
Support level: 1.1130, 1.1065
USDJPY, H1: USDJPY was traded lower following prior retracement from the resistance level at 108.45. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 107.55
Resistance level: 108.45, 109.15
Support level: 107.55, 107.05
AUDUSD, Daily: AUDUSD was traded lower while currently near the support level at 0.6480. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6720, 0.6915
Support level: 0.6480, 0.6285
NZDUSD, H1: NZDUSD was traded within a range while currently testing the resistance level at 0.6270. MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6270, 0.6325
Support level: 0.6205, 0.6120
USDCAD, Daily: USDCAD was traded lower following prior breakout below the previous support level at 1.3380. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.3310.
Resistance level: 1.3380, 1.3435
Support level: 1.3310, 1.3235
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9570. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9630, 0.9675
Support level: 0.9570, 0.9530
CrudeOIL, Daily: Crude oil price was traded higher following prior breakout above the previous resistance level at 45.45. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 51.45.
Resistance level: 51,45, 57.45
Support level: 45.45, 43.00
GOLD_, H4: Gold price was traded higher following prior rebound from the support level at 1588.45. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1626.65.
Resistance level: 1626.65, 1663.75
Support level: 1588.45, 1561.80