06 October 2020 Morning Session Analysis
Pound Sterling rose amid positive economic data.
Pound Sterling surged over the backdrop of a string of upbeats economic data from the United Kingdom region yesterday. According to Markit Economics, U.K. Composite Purchasing Managers’ Index (PMI) came in at 56.5, confounding market forecast for a reading of up to 55.7. Similarly. The U.K. Services Purchasing Managers Index (PMI) came in at 56.1, which also better than the market forecast at 55.1. As both crucial economic data had fared better than expectation, which dialed up the market optimism toward the economic progression in the UK while spurring significant demand on the Pound Sterling. Besides, Pound Sterling received further bullish momentum amid positive prospect for the Brexit’s talks. According to Reuters, the British Prime Minister Boris Johnson and the head of the European Union’s executive, Ursula von der Leyen, had reached consensus in a phone call to step up Brexit talks to close “significant gaps” barring a new trade partnership. Nonetheless, the uncertainty over the “hard-Brexit” still persisted in the market, hence investors would continue to scrutinize the latest updates with regards of the meeting between EU and UK in order to gauge the likelihood movement for the pair. As of writing, GBP/USD surged 0.09% to 1.2986.
In the commodities market, the crude oil price surged 0.08% to $39.27 per barrel as of writing. The oil market edged higher amid fears over the supply disruptions for the oil industry. According to Reuters, a strike is looming in the Norwegian oil and gas industry while analysts estimated that as much as 330,000 barrels of oil equivalent would be lost per day. On the other hand, the gold price was traded flat at $1913.20 per troy ounces amid market participants still waited for further trading signal before entering the market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
11:30 AUD RBA Rate Statement
20:00 CrudeOIL EIA Short-Term Energy Outlook
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 11:30 | AUD – RBA Interest Rate Decision (Oct) | 0.25% | 0.25% | – |
| 16:30 | GBP – Construction PMI (Sep) | 54.6 | 54.3 | – |
| 22:00 | USD – JOLTs Job Openings (Aug) | 6.618M | 6.000M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 93.55. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 93.20.
Resistance level: 93.55, 94.00
Support level: 93.20, 92.85
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3005. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3005, 1.3095
Support level: 1.2900, 1.2810
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1765. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.1810.
Resistance level: 1.1810, 1.1855
Support level: 1.1765, 1.1705
USDJPY, Daily: 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 106.70.
Resistance level: 106.70, 108.00
Support level: 105.40, 104.55
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7160. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.7210.
Resistance level: 0.7210, 0.7255
Support level: 0.7160, 0.7100
NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level at 0.6510. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6755.
Resistance level: 0.6755, 0.6880
Support level: 0.6510, 0.6265
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3255. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3320, 1.3365
Support level: 1.3255, 1.3205
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9145. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9275, 0.9385
Support level: 0.9145, 0.9060
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 39.25. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 38.05.
Resistance level: 39.25, 40.55
Support level: 38.05, 37.00
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1916.00. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1916.00, 1954.85
Support level: 1852.15, 1813.70