19 October 2020 Morning Session Analysis
Pound seesawed amid Brexit uncertainty heightened.
Pound sterling which act as one of the major currency in the FX market was having mixed pattern last Friday while ended the trading session at lower level after Boris Johnson call on UK to prepare for Australian style deal, which symbolizing the UK will leave with no trade deal in place. Prior to now, UK Prime Minister Boris Johnson has set a deadline on 15th October for Post-Brexit negotiation where no deal Brexit will be happened if deadlocks between UK and EU remain unsolved. As non-result by the deadline, Boris Johnson announced that it’s time to get ready for the prospect of no-deal Brexit on 31th Dec unless there is a fundamental change of approach from EU side. Based on the status quo, it has showed that Boris Johnson was not completely abandoned the negotiation while insisting that a deal might be reached if EU willing to offer better terms. Besides, Minister for the UK Cabinet Office Michael Gove has emphasized that they are still ‘open’ for EU trade talks only if it move ground in key areas such as fisheries and fair trading issues. During Asian early trading session, the pair of GBP/USD inched up 0.06% to 1.2920.
In the commodities market, the crude oil price appreciated by 0.20% to $41.20 per barrel after OPEC+ Secretary General Barkindo said that they will not let oil prices crash again. As of now, OPEC production cuts compliance is still up to the expectation, however investors will still keep their eye on the production cut’s figure in order to scrutinize the oil price’ trend. Besides, gold price surged 0.05% to $1901.20 per troy ounce as resurgence of pandemic lifted up the market’s anxiety.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:00 USD Fed Chair Powell Speaks
20:45 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 93.50. MACD which illustrate diminishing bearish momentum signal suggest the dollar to extend its gains toward the resistance level at 94.10.
Resistance level: 94.10, 94.90
Support level: 93.50, 92.70
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.2885. MACD which illustrates bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.2945.
Resistance level: 1.2945, 1.3000
Support level: 1.2885, 1.2815
EURUSD, H4: EURUSD was traded lower following prior retracement from the higher level. However, MACD which illustrate bullish bias momentum signal suggest the pair to undergo technical correction in short term toward a higher level.
Resistance level: 1.1765, 1.1810
Support level: 1.1705, 1.1675
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 105.15. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 105.75.
Resistance level: 105.75, 106.05
Support level: 105.15, 104.80
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7075. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 0.7140.
Resistance level: 0.7140, 0.7205
Support level: 0.7075, 0.7010
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.6610. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.6610.
Resistance level: 0.6610, 0.6660
Support level: 0.6570, 0.6515
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.3235. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.3140.
Resistance level: 1.3235, 1.3315
Support level: 1.3140, 1.3025
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9120. However, MACD which display diminishing bullish momentum signal suggest the pair to undergo technical correction in short term.
Resistance level: 0.9180, 0.9225
Support level: 0.9120, 0.9050
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support level at 40.90. MACD which illustrate bullish signal suggest the commodity to extend its gains toward the resistance level at 41.40.
Resistance level: 41.40, 42.15
Support level: 40.90, 40.40
GOLD_, H4: Gold price was traded higher following prior rebound from the support level at 1899.40. Due to lack of signal from the MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 1915.75, 1939.60
Support level: 1899.40, 1876.85