29 July 2021 Afternoon Session Analysis
Pound sterling surged amid positive signals.
Pound sterling appreciated against the US dollar amid positive development with regards to coronavirus pandemic. Recently, UK has recorded a downtrend in new coronavirus infection for six consecutive days whereby majority of them are from the Delta variant. According to UK’s top epidemiologist Neil Ferguson, the pandemic in UK may end in the next few months. Positive outlook from Ferguson and decreasing infection rate has fueled up positive market sentiment towards the pound sterling. Likewise, EU’s decision to pause legal action against the UK over Northern Ireland (NI) protocol provides additional bullish momentum on the currency. Previously, EU commented that they would remain open for renegotiation suggestion from UK, indicating that both UK and EU may enter into a win-win situation without jeopardizing trading activities between both parties. As of writing, GBP/USD surged 0.13% to 1.3922.
In the commodities market, crude oil price was up 0.46% to $72.21 per barrel as of writing. Oil price extended its gains amid rising oil demand in the US. According to Energy Information Administration (EIA), Crude Oil Inventories for last week decreased by -4.089M, significantly higher than forecast of -2.928M. On the other hand, gold price was up 0.51% to $1815.13 a troy ounce due to weaker US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:55 | EUR – German Unemployment Change (Jul) | -38K | -25K | – |
| 20:30 | USD – GDP (QoQ) (Q2) | 6.40% | 8.60% | – |
| 20:30 | USD – Initial Jobless Claims | 419K | – | – |
| 22:00 | USD – Pending Home Sales (MoM) (Jun) | 8.00% | 0.50% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 92.00. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 92.75, 93.25
Support level: 92.00, 91.35
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3900. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3980.
Resistance level: 1.3980, 1.4100
Support level: 1.3900, 1.3830
EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level at 1.1850. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1850, 1.1955
Support level: 1.1725, 1.1635
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 109.70. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 110.55, 110.95
Support level: 109.70, 109.05
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7120. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7410.
Resistance level: 0.7410, 0.7495
Support level: 0.7320, 0.7240
NZDUSD, Daily: NZDUSD was traded lower while currently testing the support level at 0.6915. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7120, 0.7305
Support level: 0.6915, 0.6770
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2535. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2440.
Resistance level: 1.2535, 1.2670
Support level: 1.2440, 1.2275
USDCHF, Daily: USDCHF was traded lower following prior breakout below the previous support level at 0.9135. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9035.
Resistance level: 0.9135, 0.9230
Support level: 0.9035, 0.8940
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 72.25. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 74.80.
Resistance level: 74.80, 76.20
Support level: 72.25, 69.85
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1813.05. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 1832.25.
Resistance level: 1832.25, 1851.85
Support level: 1813.05, 1788.95