22 April 2020 Afternoon Session Analysis
Pound sterling fell amid Brexit worries
The pound sterling which traded against the dollar and other currency pairs have fell during late Asian session amid concerns about a no-deal Brexit ahead of trade talks between the EU and U.S. set for next week. According to Reuters, a top official at Britain’s foreign ministry have stated on Tuesday that he expected Prime Minister Boris Johnson to stick with the existing Dec. 31 deadline to reach a post-Brexit trade deal with the European Union. The head of the diplomatic service at the foreign ministry, Simon McDonald mentions that there is an “option” to extend the timeline for both nations to reach a deal beyond the end of the year. Following the unwillingness of Boris Johnson to delay the Brexit any further, the possibility of achieving a trade deal between U.K and EU remain grim and hurting the economy in the future. On top of that, the ongoing coronavirus also exert pressure for the currency. Investors will now focus on upcoming inflation data expected will show weak numbers amid the impact from the Covid-19 pandemic. At the time of writing, GBP/USD fell 0.05% to 1.2285.
In the commodities market, crude oil price plummets 3.88% to $11.29 per barrel as of writing amid oversupply issue continue to dragged down sentiment. In data perspective, the American Petroleum Institute (API) have recently announced another huge 13.226-million-barrel build in U.S. crude oil stockpiles for the week ending April 17. With reports of depleting oil storage space and weakening demand for the commodity, crude oil remains struggling. On the other hand, gold price rose 0.11% to $1682.85 a troy ounce at the time of writing amid investors seeking safe-haven in the midst of economic turbulence.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – CPI (YoY) (Mar) | 1.7% | 1.5% | – |
| 20:30 | CAD – Core CPI (MoM) (Mar) | 0.7% | – | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 19.248M | 15.150M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 99.70. MACD which illustrate diminishing bearish momentum suggest the dollar to extend its gains toward the resistance level at 101.20.
Resistance level: 101.20, 102.90
Support level: 99.70, 98.30
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.2340. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 1.2215.
Resistance level: 1.2340, 1.2425
Support level: 1.2215, 1.2115
EURUSD, Daily: EURUSD was traded lower following prior breakout below the previous support level at 1.0940. MACD which illustrate bearish signal with the formation of death cross suggest the pair to extend its losses toward the support level at 1.0830.
Resistance level: 1.0940, 1.1025
Support level: 1.0830, 1.0765
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 107.95. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 107.95, 109.30
Support level: 106.85, 105.80
AUDUSD, Daily: AUDUSD was traded lower following prior retracement near the resistance level at 0.6460. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.6180.
Resistance level: 0.6460, 0.6705
Support level: 0.6180, 0.5975
NZDUSD, H1: NZDUSD was traded lower following prior retracement from the resistance level at 0.5995. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.5925.
Resistance level: 0.5995, 0.6055
Support level: 0.5925, 0.5850
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.4240. MACD which illustrate bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 1.4240.
Resistance level: 1.4240, 1.4390
Support level: 1.4105, 1.3980
USDCHF, Daily: USDCHF was traded higher following prior breakout above the resistance level at 0.9685. MACD which illustrate diminishing bearish momentum with the formation of golden cross suggest the pair to extend its gains toward the resistance level at 0.9745.
Resistance level: 0.9745, 0.9825
Support level: 0.9685, 0.9650
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level at 12.95. MACD which illustrate bearish bias momentum suggest the commodity to extend its losses toward the support level at 9.55.
Resistance level: 12.95, 15.70
Support level: 9.55, 6.80
GOLD_, Daily: Gold price was traded lower while currently testing the support level at 1683.50. MACD which illustrate bearish momentum signal with the formation of death cross suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1700.15, 1724.50
Support level: 1683.50, 1666.25