26 March 2021 Afternoon Session Analysis
Pound sterling rose following tension with EU ease.
During late Asian session, the pound sterling which traded against the dollar and other currency pairs have reversed most of its previous losses and rebound as EU and UK are trying to discuss a vaccine supply deal that benefits both countries. Recently, UK and EU have issued a joint statement stated that they will try their best to reach a deal that “create a win-win situation and expand vaccine supply for all” after EU officials previously announced stricter rules on vaccine exports produced in EU. Dutch Prime Minister Mark Rutte also stated that he is cautiously optimistic that vaccine issues with the UK can be resolved. As tension between the two countries are easing, market sentiment also improves which help lifted the pound sterling. Adding further into the positive was reports of UK’s meat and seafood export to the EU have recovered in Feb. At the time of writing, GBP/USD rose 0.20% to 1.3756.
In the commodities market, crude oil price rebounds 1.37% to $59.11 per barrel at the time of writing following concerns of Suez Canal blockage will last longer. Following latest development, the trapped container ship Evergreen is still blocking traffic in the Suez Canal, one of the world’s busiest shipping channels for oil. Officials stopped all ships entering the canal on Thursday, and a salvage company said the vessel may take weeks to free. On the other hand, gold price fell 0.17% to $1724.24 a troy ounce at the time of writing following ongoing dollar strength.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
18:00 EUR EU Leaders Summit
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | GBP – Retail Sales (YoY)(Feb) | -3.8% | -1.5% | – |
| 17:00 | German ifo Business Climate Index (Mar) | 92.4 | 93.2 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level at 92.35. However, MACD which illustrated diminishing bullish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 93.35, 94.10
Support level: 92.55, 91.90
GBPUSD, H1: GBPUSD was traded higher while currently testing the resistance level at 1.3745. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3745, 1.3815
Support level: 1.3680, 1.3625
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.1850. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1850, 1.1975
Support level: 1.1725, 1.1615
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 109.20. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 109.20, 110.35
Support level: 108.30, 107.55
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7590. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7650, 0.7710
Support level: 0.7590, 0.7505
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.7005. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7005, 0.7105
Support level: 0.6900, 0.6765
USDCAD, Daily: USDCAD was traded higher while currently testing the resistance level at 1.2600. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2600, 1.2745
Support level: 1.2400, 1.2255
USDCHF, H1: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9370. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9450, 0.9525
Support level: 0.9370, 0.9300
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 59.30. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 59.30, 61.15
Support level: 57.45, 55.85
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1735.75. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1703.00.
Resistance level: 1735.75, 1755.40
Support level: 1703.00, 1676.90