30 January 2019 Afternoon Session Analysis
Can Theresa May save Brexit?
Pound sterling extended its losses on Wednesday after UK lawmakers reject amendments to extend Brexit deadline scheduled on March 29th 2019. As of writing, pair of GBP/USD depreciates by 0.39% to 1.3093. On yesterday, an amendment suggested by Labor MP Yvette Cooper that sought to extend the Brexit deadline if MPs fail to approve Withdrawal Agreement by February 26th has been rejected by the Parliament. Without an option for extension of deadline, Britain is highly possible to exit from the EU without securing a deal. Subsequently, UK Prime Minister Theresa May will be heading to Brussels and persuade EU lawmakers in making amendments upon prior agreed Withdrawal Deal. However, EU has previously rejected to renegotiate the deal and this may further complicate Brexit progress and chances of “soft exit”. On the other hand, pair of AUD/USD rose 0.58% to 0.7195. The Australian dollar received higher demand over the backdrop of bullish CPI data and upward revision on iron ore price forecasts.
As for commodities, crude oil price appreciates by 0.43% to $53.28 per barrel. Oil prices extended its gains while traders assess the degree of oil shortage after US enacted sanctions against several Venezuela’s nationally owned oil companies. Otherwise, gold price ticks up 0.17% to $1,313.93 a troy ounce following higher risk.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
03:00 (31st) USD FOMC Statement
03:00 (31st) USD FOMC Press Conference
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 21:00 | EUR – German CPI (MoM) (Jan) | 0.1% | -0.7% | – |
| 21:15 | USD – ADP Nonfarm Employment Change (Jan) | 271K | 170K | – |
| 21:30 | USD – GDP (QoQ) (Q4) | 3.4% | 2.6% | – |
| 23:00 | USD – Pending Home Sales (MoM) (Dec) | -0.7% | 1.1% | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | 7.970M | – | – |
| 03:00 (31st) | USD – Fed Interest Rate Decision | 2.50% | 2.50% | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index remains traded within a sideways channel. MACD begins to form a death cross signal suggests the index to extend its losses in short-term after closing below the 20-MA line (red).
Resistance level: 95.60, 95.75
Support level: 95.30, 95.00
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level of 1.3060. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3125, 1.3230
Support level: 1.3060, 1.2990
EURUSD, Daily: EURUSD was traded higher while currently testing near the resistance of 1.1435. MACD which begins to form a golden cross signal suggests the pair to advance further upwards after breaking the target of 1.1435.
Resistance level: 1.1435, 1.1515
Support level: 1.1355, 1.1300
USDJPY, H4: USDJPY was traded lower while currently testing at the upward trendline. MACD which has formed a death cross signal suggests the pair to extend its losses after successfully breaking the trendline.
Resistance level: 109.90, 110.25
Support level: 109.35, 108.95
AUDUSD, H1: AUDUSD remains traded within a sideways channel while recently rebound from the support of 0.7145. MACD which has formed a golden cross signal suggests the pair to advance further upwards in short-term.
Resistance level: 0.7220, 0.7255
Support level: 0.7145, 0.7115
NZDUSD, Daily: NZDUSD remains traded within a narrowing triangle while currently testing at the top level. MACD which has formed a golden cross signal suggests the pair to extend its gains after successfully breaking the top level of the triangle.
Resistance level: 0.6840, 0.6890
Support level: 0.6780, 0.6710
USDCAD, H1: USDCAD remains traded within a sideways channel following prior retrace from the top level. MACD which has formed a death cross signal suggests the pair to be traded lower in short-term after successfully closing below 1.3250.
Resistance level: 1.3280, 1.3325
Support level: 1.3250, 1.3220
USDCHF, H1: USDCHF was traded lower following prior retracement from the downward trendline. MACD which has formed a death cross signal suggests the pair to be traded lower, in tandem with the current bearish trend.
Resistance level: 0.9970, 1.0000
Support level: 0.9935, 0.9920
CrudeOIL, H1: Crude oil price was traded higher following a rebound from its previous low. However, MACD which illustrate diminished upward momentum suggests its prices to be traded lower in short-term as technical correction.
Resistance level: 53.70, 54.40
Support level: 52.80, 51.85
GOLD_, H4: Gold price was traded higher following prior closure above 1305.40. MACD which illustrate persistent bullish signal suggests its prices to extend further up after closing above 1313.80.
Resistance level: 1313.80, 1321.20
Support level: 1305.40, 1295.55