03 December 2020 Morning Session Analysis
Pound plunged amid likelihood of Brexit deal faded.
Pound sterling which act as one of the major currency in the FX market seesawed amid mixed market sentiment. Early yesterday, pound received tremendous sell-off pressures after EU Chief Brexit negotiator Michel Barnier told the 27 national envoys to Brussels today as divergences in Brexit talks persisted. Besides, a diplomat who was attended the close door briefing have also revealed that the differences opinion over the three major issues remains unsolved, which including level of fair playing field, fisheries and approaches to solving future disputes. Michel Barnier has also warned that UK should show more tolerance in negotiation as the deal needs to be sealed by the end of this week. With the backdrop of talks impasses, heightening of Hard-Brexit possibility increased the market worries over the future outlook of UK economy, as leaving without a deal might further deteriorate UK economy on top of the virus’s fallout. Despite, the losses of pound was limited as UK regulators has granted emergency authorization for a vaccine made by US pharmaceutical company Pfizer and German drug manufacturer BioNtech. UK has become the first western country to authorize the use of Covid-19 vaccine. As of writing, the pair of GBP/USD rose 0.07% to 1.3375.
In the commodities market, the crude oil price ticked up by 0.24% to $45.15 per barrel after falling for 2.50% percent amid a lower-than-expected drop in US crude oil inventories. According to EIA, US Crude Oil Inventories data was came in at -0.679M, lower than the economist expectation over the stocks fell at -2.358M. However, UK vaccine approval has successfully reversed the losses of this oil product as it boosted the hopes for a demand recovery. Besides, gold price dropped 0.07% to $1829.65 a troy ounce after UK approved the vaccines which produced by Pfizer and BioNtech.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Composite PMI (Nov) | 47.4 | 47.4 | – |
| 17:30 | GBP – Services PMI (Nov) | 45.8 | 45.8 | – |
| 21:30 | USD – Initial Jobless Claims | 778K | 775K | – |
| 23:00 | USD – ISM Non-Manufacturing PMI | 56.6 | 56.0 | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower while currently testing the support level at 91.00. MACD which illustrate bearish bias momentum signal suggest the dollar to extend its losses after it successfully breakout below the support level at 91.00.
Resistance level: 91.20, 91.50
Support level: 91.00, 90.75
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level at 1.3350. MACD which illustrates increasing bullish momentum suggest the pair to extend its rebound toward the resistance level at 1.3390.
Resistance level: 1.3390, 1.3430
Support level: 1.3350, 1.3320
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.2065. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 1.2130.
Resistance level: 1.2130, 1.2175
Support level: 1.2065, 1.1990
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 104.40. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses after it successfully breakout below the support level at 104.40.
Resistance level: 104.65, 104.90
Support level: 104.40, 104.20
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7405. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.7480.
Resistance level: 0.7480, 0.7540
Support level: 0.7405, 0.7330
NZDUSD, H1: NZDUSD was traded higher while currently testing the resistance level at 0.7075. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.7075.
Resistance level: 0.7075, 0.7100
Support level: 0.7045, 0.7010
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2920. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after its candle successfully closed below the support level.
Resistance level: 1.2950, 1.2995
Support level: 1.2920, 1.2885
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.8940. MACD which display bearish bias momentum signal suggest the pair to extend its losses after it successfully breakout below the support level at 0.8940.
Resistance level: 0.8980, 0.9020
Support level: 0.8940, 0.8895
CrudeOIL, H1: Crude oil price was traded lower while currently testing the support level at 44.65. MACD which display diminishing bullish momentum signal suggest the commodity to extend its losses after it successfully breakout below the support level at 44.65.
Resistance level: 45.50, 46.30
Support level: 44.65, 44.00
GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1816.00. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 1833.65, 1845.60
Support level: 1816.00, 1802.25