25 January 2021 Morning Session Analysis
Pound sterling plunged amid downbeat economic data.
Pound sterling which act as one of the major currency that being traded in the FX market sinks following a series of downbeat economic data cemented the market view over the negative effect of lockdown against UK economy. Last Friday, UK manufacturing and services industry signalled a renewed downturn in their economy last month amid third national lockdown, which forced large part of economic activity halted in order to curb the spread of pandemic. According to Markit Economics, UK Composite PMI came in at 40.6, missing the economist forecast at 50.7, showing that the economy hit hard by the ongoing lockdown measure as it reduced consumer spending and trades. Besides, a weaker-than-expected reading from UK Retail Sales data has further proved that these restriction has tampered the recovery pace of UK economy. With the backdrop of deteriorating economy, market participants are now putting their attention over the future step that will be taken by Bank of England (BoE) such as further loosening their monetary policy which included implementing negative interest rate in the upcoming BoE meeting. During Asian early trading session, the pair of GBP/USD dropped by 0.02% to 1.3682.
In the commodities market, the crude oil price rebounds by 0.60% to $52.22 per barrel after falling to two weeks low level amid surprise build in US inventory diminished the appeal of this black commodity product. According to the EIA, US Crude Oil Inventory level has increased by 4.351M, unexpectedly higher than the economist forecast at -1.167M, sparked the market concern over the balance of supply and demand. Besides, gold price surged by 0.12% to $1857.57 per troy ounce amid worsening of pandemic around the world boosted up the demand over safe haven asset.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16:45 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:00 | EUR – German ifo Business Climate Index (Jan) | 92.1 | 91.8 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the lower level. MACD which illustrated diminishing bearish momentum suggest the index to extend its gains toward the resistance level at 90.25.
Resistance level: 90.25, 90.60
Support level: 89.90, 89.60
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the lower level. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher toward the resistance level at 1.3700.
Resistance level: 1.3700, 1.3805
Support level: 1.3620, 1.3535
EURUSD, H4: EURUSD was traded lower following prior retracement from the higher level. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.2155.
Resistance level: 1.2205, 1.2250
Support level: 1.2155, 1.2120
USDJPY, H4: USDJPY was traded higher while currently testing the downward trendline. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the trendline.
Resistance level: 104.00, 104.35
Support level: 103.70, 103.35
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.7735. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.7670.
Resistance level: 0.7735, 0.7770
Support level: 0.7670, 0.7635
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7165. MACD which illustrated bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level at 0.7165.
Resistance level: 0.7235, 0.7305
Support level: 0.7165, 0.7090
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.2695. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.2800.
Resistance level: 1.2800, 1.2865
Support level: 1.2695, 1.2615
USDCHF, H4: USDCHF was traded flat near the resistance level at 0.8855. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short term after it successfully breakout above the resistance level.
Resistance level: 0.8855, 0.8885
Support level: 0.8820, 0.8795
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 51.65. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 52.60.
Resistance level: 52.60, 53.75
Support level: 51.65, 50.65
GOLD_, H4: Gold price was traded higher following prior rebound from the support level at 1842.90. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 1861.05.
Resistance level: 1861.05, 1871.90
Support level: 1842.90, 1825.40