12 May 2021 Afternoon Session Analysis
Pound rose following easing concerns of Scotland exit.
During late Asian session, the pound sterling which traded against the dollar and other currency pairs held most of its gains after soared to 10-week high following fading worries of Scottish referendum on whether to leave the U.K. According to Action Economics, the Scottish National Party fell short on gaining an overall majority in national election last week and polling suggest that most people in Scotland doesn’t want a new referendum on independence. Following the risk of Scotland exit receding, the pound sterling is likely to be supported by signs of recovery in U.K. On top of that, the pair is also likely to be supported by recent victory from U.K Prime Minster Boris Johnson’s Conservative party in local elections. At the time of writing, GBP/USD rose 0.06% to 1.4106.
In the commodities market, crude oil price rose 0.11% to 65.06 per barrel as of writing following OPEC remains positive on demand recovery. On Tuesday, OPEC remain stuck to its prediction of a strong recovery in global oil demand for 2021 following growth in China and U.S should counter India’s Covid crisis. It expects that the demand will rise by 5.95 million barrels per day for this year. On the other hand, gold price fell 0.56% to $1827.09 a troy ounce at the time of writing following dollar rebound.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
17:00 GBP BoE Gov Bailey Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – GDP (QoQ) (Q1) | 1.3% | -1.7% | – |
| 14:00 | GBP – Manufacturing Production (MoM) (Mar) | 1.3% | 1.0% | – |
| 17:00 | GBP – BoE Gov Bailey Speaks | – | – | – |
| 20:30 | USD – Core CPI (MoM) (Apr) | 0.3% | 0.3% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level 90.15. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the dollar to extend its rebound towards the resistance level 90.65.
Resistance level: 90.65, 91.30
Support level: 90.15, 89.65
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.4090. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to extend its retracement after it breaks below the support level.
Resistance level: 1.4190, 1.4280
Support level: 1.4090, 1.4000
EURUSD, H4: EURUSD was traded lower following prior breakout below the support level 1.2125. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to extend its losses towards the support level 1.2065.
Resistance level: 1.2125, 1.2230
Support level: 1.2065, 1.2000
USDJPY, H4: USDJPY remain traded in a sideway channel following recent rebound from the support level. However, MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its rebound in short term towards the resistance level 109.05.
Resistance level: 109.05, 109.75
Support level: 108.45, 107.60
AUDUSD, H4: AUDUSD was traded lower following recent breakout below the previous support level 0.7805. MACD which illustrate bearish momentum signal with recent formation of death cross suggest the pair to extend its losses toward the support level 0.7760.
Resistance level: 0.7805, 0.7860
Support level: 0.7760, 0.7700
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level 0.7220. MACD which illustrate bearish bias signal with the recent formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.7280, 0.7330
Support level: 0.7220, 0.7145
USDCAD, H4: USDCAD was traded flat while currently testing near the resistance level 1.2150. However, MACD which display bullish momentum signal with the recent formation of golden cross suggest the pair to be traded higher after it breaks above the resistance level.
Resistance level: 1.2150, 1.2270
Support level: 1.2030, 1.1915
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level 0.9020. MACD which illustrate persistent bullish bias signal suggest the pair to extend its gains towards the resistance level 0.9080.
Resistance level: 0.9080, 0.9135
Support level: 0.9020, 0.8950
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level 64.25. MACD which illustrate diminishing bearish momentum signal with the formation of golden cross suggest the commodity to extend its rebound towards the resistance level 66.60.
Resistance level: 66.60, 67.85
Support level: 64.40, 62.35
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level 1829.80. MACD which illustrate bearish bias signal with the recent formation of death cross suggest the commodity to extend its losses towards the support level 1813.85.
Resistance level: 1829.80, 1846.00
Support level: 1813.85, 1795.25