03 November 2020 Morning Session Analysis
Pound slips following easing expectation from BoE.
During early Asian session, the pound sterling which traded against the dollar and other currency pairs have gave up its gains and fell amid increasing market expectations of BoE to step up monetary policy easing. Following latest report, BoE is expected to launch a £100 billion asset purchases on Thursday. The expectation came after U.K recently announced that the country will entered a second lockdown which will demand people to stay at home unless it’s for essential purpose like medical reasons, education and groceries for a month period in order to curb the spread of COVID-19 infections. On Monday, U.K records another 18950 COVID-19 cases with 136 deaths. As the speculation continue to grow, the expectation also weigh on the sentiment, thus exert pressure for the pair. At the time of writing, GBP/USD slips 0.03% to 1.2914.
In the commodities market, crude oil price soars 0.11% to $37.01 per barrel as of writing following extension of oil production cuts from OPEC. The top executives of Russia’s oil companies have discussed the future of the OPEC+ deal on Monday with Russian Energy Minister Alexander Novak, including an option to extend the cuts as-is for three months until March 2021. On the other hand, gold price also jumps 0.09% to $1895.66 a troy ounce at the time of writing following COVID-19 and U.S election uncertainty boosted the demand for safe-haven asset.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
11.30 AUD RBA Rate Statement
21.00 USD U.S Presidential Election
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 11.30 | AUD – RBA Interest Rate Decision (Nov) | 0.25% | 0.10% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from its high level. MACD which illustrate bearish bias signal with the starting formation of death cross suggest the dollar to extend its retracement in short term towards the support level 93.80.
Resistance level: 94.65, 95.75
Support level: 93.80, 93.00
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level 1.2870. MACD which illustrate bullish bias signal with the starting formation of golden cross suggest the pair to extend its rebound towards the resistance level 1.3060.
Resistance level: 1.3060, 1.3230
Support level: 1.2870, 1.2700
EURUSD, H4: EURUSD was traded lower while currently testing the support level 1.1615. However, MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to be experience a technical correction towards the resistance level 1.1765.
Resistance level: 1.1765, 1.1880
Support level: 1.1615, 1.1455
USDJPY, H4: USDJPY remain traded in a sideway channel. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower towards the support level 104.25.
Resistance level: 105.10, 105.80
Support level: 104.25, 103.65
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level 0.7005. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 0.7105.
Resistance level: 0.7105, 0.7200
Support level: 0.7005, 0.6925
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level 0.6595. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 0.6670.
Resistance level: 0.6670, 0.6725
Support level: 0.6595, 0.6510
USDCAD, H4: USDCAD was traded lower following prior breakout below the support level 1.3240. MACD which illustrate bearish momentum signal suggest the pair to extend its losses towards the support level 1.3105.
Resistance level: 1.3240, 1.3335
Support level: 1.3105, 1.2995
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level 0.9185. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a technical correction towards the support level 0.9085.
Resistance level: 0.9185, 0.9295
Support level: 0.9085, 0.9000
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level 36.55. MACD which illustrate bullish bias signal with the formation of golden cross suggest the commodity to extend its gains towards the resistance level 39.25.
Resistance level: 39.25, 41.55
Support level: 36.55, 34.10
GOLD_, H4: Gold price remain traded in sideway channel following recent breakout above the previous resistance level 1879.05. However, MACD which illustrate bullish momentum signal suggest the commodity to extend its gains in short term towards the resistance level 1919.00.
Resistance level: 1919.00, 1970.55
Support level: 1879.05, 1847.70