25 August 2020 Morning Session Analysis
Pound slumped over the fears of hard-Brexit.
The lack of progress over the trade negotiation between the British and European Union negotiators has left scant hope on soft-Brexit, sapping the market demand on the Pound Sterling. According to Reuters, both sides claimed that they made no real progress in their latest talks with regards of the post-Brexit relationship after a transition period expired at the end of December. Failure for both parties to reach a deal would leave Britain trading with the European Union under World Trade Organization (WTO) rules. Nonetheless, investors will shift their focus in this week toward the monetary polcy statement from the Bank of England (BoE) to receive further trading signal while gauging the likelihood movement for the pair. In earlier, the Bank of England (BoE) had cut the interest rate twice since March from 0.75% to 0.1% in response to combating the economical damage due to coronavirus pandemic. As of writing, GBP/USD appreciated by 0.04% to 1.3065.
In the commodities market, the crude oil price surged 0.24% to $42.43 per barrel as of writing. The oil market extends its gains following the major energy companies cut its oil production at U.S. Gulf Coast oil refineries on Monday amid back-to-back storms took aim at the coast. Tropical Storms Marco and Laura had assault on key U.S. oil regions, threaten to bring days of heavy rains and strong winds this week while prompting the oil producers to shut more than 1 million barrels per day of Gulf Coast offshore oil production. On the other hand, the gold price slumped 0.03% to $1928.40 per troy ounces as of writing amid optimism over U.S. authorization of a blood plasma treatment for coronavirus had spurred risk appetite in the FX market, which diminishing market demand on the safe-haven 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 |
| 14:00 | EUR – German GDP (QoQ) (Q2) | -2.2% | -10.1% | – |
| 16:00 | EUR – German Ifo Business Climate Index (Aug) | 90.5 | 92.0 | – |
| 22:00 | USD – CB Consumer Confidence (Aug) | 92.6 | 93.0 | – |
| 22:00 | USD – New Home Sales (Jul) | 776K | 786K | – |
| 04:30
(26th) |
CrudeOIL – API Weekly Crude Oil Stock | -4.264M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 93.30. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 93.30, 93.80
Support level: 92.60, 92.05
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3060. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3145, 1.3250
Support level: 1.3060, 1.3000
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1785. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1885, 1.2040
Support level: 1.1785, 1.1710
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 105.40. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 106.40.
Resistance level: 106.40, 107.35
Support level: 105.40, 104.25
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7205. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7205, 0.7235
Support level: 0.7140, 0.7075
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.6525. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6575, 0.6625
Support level: 0.6525, 0.6465
USDCAD, H1: USDCAD was traded lower following prior retracement from the resistance level at 1.3235. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.3160.
Resistance level: 1.3235, 1.3315
Support level: 1.3160, 1.3100
USDCHF, H4: USDCHF was traded higher following breakout above the previous resistance level at 0.9110. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9180, 0.9240
Support level: 0.9110, 0.9060
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 41.50. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 43.05.
Resistance level: 43.05, 43.90
Support level: 41.50, 40.65
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1956.60. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1910.50.
Resistance level: 1956.60, 2005.65
Support level: 1910.50, 1867.70