19 September 2022 Afternoon Session Analysis
Pound dipped as downbeat economic data sparked recession risk.
The Pound Sterling slumped significantly last week as the downbeat economic data had sparked recession fears, which dragging down the appeal for the Pound Sterling. According to Office for National Statistics, UK Retail sales for last month down significantly from the previous reading of 0.4% to -1.6%, missing the market forecast at -0.5%. With average UK wages continuing to fall behind rising prices and higher borrowing cost, the market participants remained pessimistic toward the economic progression in United Kingdom. In addition, the World Bank warned that the global financial market may be edging toward a global recession following the aggressive rate hike expectation from central bank, which stoked a shift in sentiment toward other safe-haven asset such as US Dollar, triggering further selloff for the Pound Sterling. Nonetheless, investors would be on high alert on monetary policy decision from Bank of England on Thursday to receive trading signal. The UK Policymakers are expected to increase their interest rate by another 50-basis point to stabilize the inflation risk. As of writing, GBP/USD depreciated by 0.09% to 1.1403.
In the commodities market, the crude oil price depreciated by 0.20% to $85.15 per barrel as of writing. The oil market edged lower as rising global recession risk continue to weigh down the market demand on this black-commodity. On the other hand, the gold price depreciated by 0.36% to $1669.00 per troy ounces as of writing amid strengthening US Dollar.
Today’s Holiday Market Close
Time Market Event
All Day JPY Respect for the Aged Day
All Day GBP Bank Holiday
Today’s Highlight Events
Time Market Event
11:00 NZD RBNZ Gov Orr Speaks
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level. MACD which illustrated diminishing bearish momentum suggest the index to extend its gains after breakout.
Resistance level: 109.70, 112.65
Support level: 104.85, 101.30
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher as technical correction.
Resistance level: 1.1585, 1.1730
Support level: 1.1405, 1.1310
EURUSD, H4: EURUSD was traded higher following prior rebounded from the support level. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 1.0060, 1.0180
Support level: 0.9955, 0.9875
USDJPY, Daily: USDJPY was traded lower following prior retracement from the resistance level. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level.
Resistance level: 145.35, 152.80
Support level: 140.75, 136.55
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher as technical correction.
Resistance level: 0.6875, 0.6980
Support level: 0.6705, 0.6595
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after breakout.
Resistance level: 0.6050, 0.6155
Support level: 0.5945, 0.5845
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 1.3320, 1.3435
Support level: 1.3195, 1.3100
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 0.9740, 0.9855
Support level: 0.9635, 0.9515
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher as technical correction.
Resistance level: 89.65, 92.60
Support level: 84.90, 81.40
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level.
Resistance level: 1680.00, 1693.65
Support level: 1656.10, 1642.20