17 December 2020 Afternoon Session Analysis
Pound zig zag, market eyes on Brexit trade talk.
Pound sterling which acting as one of the major currencies being traded in FX market was having mixed pattern while currently lingering near the highest level in two and a half years ahead of crucial talk between UK and EU. With just over two weeks left before the deadline of Brexit, EU and UK are currently in the final stretch of negotiation in order to seal a deal in order to avoid the possibility of Hard-Brexit. Despite recent news showed that both parties are moving closer to a deal, however it is still unclear if UK and EU would succeed within the remaining time frame. According to the latest statement from EU President Ursula von der Leyen, she has emphasized that talks on fisheries remained ‘very difficult’. Besides, she also reiterated that she cannot promise that whether a deal could be secured between two countries as of now, there is a path to an agreement, but the path is very narrow. As of now, the pair of GBP/USD rose 0.24% to 1.3538.
In the commodities market, the crude oil price surged 1.02% to $48.58 per barrel as of writing amid this black commodity market sentiment remained optimism since the rollout of vaccine in US. Besides, unexpected fall in US crude oil inventories also boosted the price of crude oil further higher. Besides, gold price appreciated by 0.07% to 1864.00 amid weakening of dollar index.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16.30 CHF SNB Monetary Policy Assessment
17.00 CHF SNB Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16.30 | CHF – SNB Interest Rate Decision | -0.75% | -0.75% | – |
| 18.00 | EUR – CPI (YoY) (Nov) | -0.3% | -0.3% | – |
| 20.00 | GBP – BoE Interest Rate Decision (Dec) | 0.10% | 0.10% | – |
| 21.30 | USD – Building Permits (Nov) | 1.544M | 1.550M | – |
| 21.30 | USD – Initial Jobless Claims | 853K | 800K | – |
| 21.30 | USD – Philadelphia Fed Manufacturing Index (Dec) | 26.3 | 20.0 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 89.90. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 90.95, 91.80
Support level: 89.90, 89.05
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3540. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3540, 1.3655
Support level: 1.3465, 1.3365
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.2165. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.2240.
Resistance level: 1.2240, 1.2330
Support level: 1.2165, 1.2075
USDJPY, H1: USDJPY was traded lower while currently testing the support level at 103.20. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 103.70, 104.05
Support level: 103.20, 102.75
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7590. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7590, 0.7690
Support level: 0.7480, 0.7370
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.7095. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7165.
Resistance level: 0.7165, 0.7235
Support level: 0.7095, 0.7015
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.2720. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3025, 1.3370
Support level: 1.2720, 1.2520
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.8845. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.8915, 0.8980
Support level: 0.8845, 0.8755
CrudeOIL, Weekly: Crude oil price was traded higher while currently testing the resistance level at 49.95. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 49.95, 60.30
Support level: 41.60, 33.50
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1865.75. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1865.75, 1891.55
Support level: 1845.00, 1824.50