07 December 2020 Morning Session Analysis
Pound plunged as likelihood of Soft-Brexit faded.
Pound sterling which act as one of the major currencies that being traded in the FX market fall as market participants question over the progress of Brexit trade talks while fleeing away from pound market at the moment in order to avoid any unprecedented risks. During the trade talks on last weekend, European Union and British negotiators paused talks for the post-Brexit trade deal after failing to resolve the divergences to seal a deal. According to Michel Barnier’s statement, he revealed that significant opinion differences between UK and EU on level of playing field, governance and fisheries are still the important factors that blocking the agreement to be met. Afterwards, both negotiators decided to brief their leaders and planning to find a new impetus to break the deadlock. As of now, UK Prime Minister Boris Johnson and EU President Ursula von der Leyen instructed their negotiator to resume the trade talks again in order to achieve consensus before the end of the transition period on 31st December 2020. As time running short, the likelihood of securing a deal become unlikely, while the pound market sentiment turned dim. During Asian trading session, the pair of GBP/USD dropped 0.15% to 1.3415.
In the commodities market, the crude oil price surged by 0.26% to $46.30 per barrel as OPEC+ compromise over the oil production cuts continued cheering up this black commodity market sentiment. In the OPEC meeting, OPEC and its allies agreed to extend their production cuts plan by 7.2 million per day starting from next year. Besides, gold price depreciated by 0.11% to $1834.95 a troy ounce amid recent positive vaccines development news urged investors to seek for riskier asset.
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 |
| 23:00 | CAD – Ivey PMI (Nov) | 54.5 | 51.5 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 90.60. MACD which illustrate bullish bias momentum suggest the dollar to extend its gains toward the resistance level at 91.10.
Resistance level: 91.10, 91.45
Support level: 90.60, 90.15
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3470. MACD which illustrates bearish momentum signal suggest the pair to extend its losses toward the support level at 1.3385.
Resistance level: 1.3470, 1.3535
Support level: 1.3385, 1.3290
EURUSD, H1: EURUSD was traded lower following prior breakout below the previous support level at 1.2135. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 1.2105.
Resistance level: 1.2135, 1.2175
Support level: 1.2105, 1.2045
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 104.00. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 104.35.
Resistance level: 104.35, 104.70
Support level: 104.00, 103.65
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7445. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.7400.
Resistance level: 0.7445, 0.7480
Support level: 0.7400, 0.7365
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.7090. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 0.7015.
Resistance level: 0.7090, 0.7175
Support level: 0.7015, 0.6960
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2810. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1.2750.
Resistance level: 1.2810, 1.2855
Support level: 1.2750, 1.2715
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.8895. MACD which display bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 0.8945.
Resistance level: 0.8945, 0.8985
Support level: 0.8895, 0.8870
CrudeOIL, H1: Crude oil price was traded lower while currently testing the bottom level of upward channel. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses after it successfully breakout below the bottom level of upward channel.
Resistance level: 46.65, 48.20
Support level: 45.55, 44.65
GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1830.65. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its gains toward the resistance level at 1844.50.
Resistance level: 1844.50, 1855.95
Support level: 1830.65, 1815.50