8 February 2019 Morning Session Analysis
Will Brexit to go on smoothly?
US dollar eases from its previous high on yesterday following a sharp rebound in pound sterling. As of writing, the dollar index was quoted down 0.05% to 93.30 while pair of GBP/USD rose 0.44% to 1.2947. In the UK, British Prime Minister Theresa May commented that her talks with EU President Jean-Claude Junker with regards to Irish backstop and withdrawal agreement were “constructive”. Her tone has sparked optimism among investors as EU has previously rejected any effort in re-negotiating the Brexit agreement. Likewise, positive development in both nations would hinder UK from exiting EU without a trade deal (an option which may be dire for both economies). On the other hand, pair of EUR/USD fell 0.02% to 1.1337. Euro remains on the backfoot following soft industrial production data from Germany, signaling recessive economic momentum from EU’s largest economy.
Otherwise, crude oil price plunged more than 4% on yesterday to $51.88 per barrel. Oil prices tumbled after Russian disincline to come further into OPEC’s production cut plans while delays in US-China trade summit has dialed down market bets on the commodity’s price. On the other hand, gold price ticked up 0.02% to $1,309.92 a troy ounce following a slight depreciation in US dollar.
Today’s Holiday Market Close
Time Market Event
All Day China Spring Festival
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | EUR – German Trade Balance (Dec) | 19.0B | 18.1B | – |
| 21:30 | CAD – Employment Change (Jan) | 9.3K | 8.0K | – |
| 21:30 | CAD – Unemployment Change (Jan) | 5.6% | 5.7% | – |
| 02:00
(9th) |
CrudeOIL – US Baker Hughes Oil Rig Count | 847 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing near the resistance of 96.30. MACD which continues to illustrate bullish signal suggests the index to extend its gains after closing above the target of 96.30.
Resistance level: 96.30, 96.65
Support level: 96.00, 95.50
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the downward trendline. MACD which illustrate diminished upward momentum suggests the pair to extend its losses after successfully closing below 1.2930.
Resistance level: 1.2990, 1.3060
Support level: 1.2930, 1.2855
EURUSD, H4: EURUSD was traded lower following prior retrace from the resistance at 1.1355. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 1.1300.
Resistance level: 1.1355, 1.1415
Support level: 1.1300, 1.1215
USDJPY, H1: USDJPY remains traded within a sideways channel following prior rebound from the bottom level. Due to the lack of signal from MACD and price action, it is suggested to wait for a breakout before entering the market.
Resistance level: 110.00, 110.50
Support level: 109.55, 108.95
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level of 0.7070. MACD which illustrate bearish signal suggests the pair to advance further down after closing below the target of 0.7070.
Resistance level: 0.7170, 0.7275
Support level: 0.7070, 0.7015
NZDUSD, H1: NZDUSD was traded lower following prior retrace from the 20-MA line (red). MACD which illustrate diminished upward momentum suggests the pair to be traded lower, towards the direction of 0.6710.
Resistance level: 0.6780, 0.6820
Support level: 0.6710, 0.6645
USDCAD, H4: USDCAD was traded higher while currently testing near the resistance of 1.3325. MACD which illustrate bullish signal suggests the pair to extend its gains after successfully closing above 1.3325.
Resistance level: 1.3325, 1.3360
Support level: 1.3280, 1.3220
USDCHF, H1: USDCHF was traded higher following prior rebound from the support of 1.0000. MACD which has formed a golden cross signal suggests the pair to be traded higher, towards the direction of 1.0040.
Resistance level: 1.0040, 1.0080
Support level: 1.0000, 0.9970
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support at 51.85. MACD which illustrate diminished downward momentum suggests its prices to be traded higher in short-term as technical correction.
Resistance level: 52.80, 53.70
Support level: 51.85, 51.50
GOLD_, H1: Gold price remains traded within a downward channel while currently testing near the top level. MACD which illustrate diminished upward momentum suggests its prices to be traded lower following a successful retrace from the top level.
Resistance level: 1313.80, 1321.20
Support level: 1305.40, 1295.55