21 October 2019 Morning Session Analysis
Sterling tumbles as Brexit deal vote falters.
Pound sterling opened lower during Asian trading session following waning optimism towards Brexit. The pair of GBP/USD tumbled down 0.53% to 1.2902 as of writing. Sterling received higher selling pressure after UK Parliament’s voting session upon the revised Brexit deal falters due to Letwin Amendment. The amendment was passed with 322 against 306, whereby the parliament withhold the approval of Brexit deal and at the same time forces UK PM Boris Johnson to request for a Brexit extension with the European Union if it fails to be approved. However, analysts suggest that EU is less likely to approve for a longer extension and they are most likely to extend the Brexit deadline of 31st October by another three months. For the time being, investors will place their focus upon Parliamentary questioning upon the Brexit deal, specifically with regards to Irish backstop during this week. On the other hand, greenback rebounds from its lower levels following a slump in pound sterling and euro. However, the currency failed to make further substantial gains as recent economic data from the region suggests for more rate cuts from the Federal Reserve in order to sustain current economic momentum. As of writing, the dollar index rose 0.07% to 97.12.
As for commodities, crude oil price depreciates by 0.22% to $53.61 per barrel. Oil prices remains under pressure as slowing global economy places a bearish outlook upon future demand for the commodity. On the other hand, gold price rose 0.03% to $1,490.98 a troy ounce due to rising Brexit risks in the UK and EU.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | EUR – German PPI (MoM) (Sep) | -0.5% | -0.1% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior close below 97.15. MACD which illustrate bearish signal suggests the index to extend its losses in mid-term, towards the direction of 96.70.
Resistance level: 97.15, 97.60
Support level: 96.70, 96.10
GBPUSD, H1: GBPUSD was traded lower while currently testing at the upward trendline. MACD which begins to form bearish signal suggests the pair to extend its losses after breaking the trendline.
Resistance level: 1.2950, 1.3035
Support level: 1.2820, 1.2665
EURUSD, H4: EURUSD was traded lower following prior retrace from its higher levels. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1180, 1.1205
Support level: 1.1145, 1.1085
USDJPY, H4: USDJPY was traded lower following prior retracement from 108.75. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 108.10.
Resistance level: 108.45, 108.75
Support level: 108.10, 107.60
AUDUSD, H4: AUDUSD was traded lower following prior retrace from its higher levels. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6865, 0.6885
Support level: 0.6830, 0.6800
NZDUSD, H4: NZDUSD was traded lower following prior retracement from its higher levels. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6410, 0.6425
Support level: 0.6365, 0.6340
USDCAD, H4: USDCAD was traded higher following prior rebound from the lower levels. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3145, 1.3190
Support level: 1.3090, 1.3025
USDCHF, H4: USDCHF was traded higher following prior rebound from the lower levels. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9865, 0.9925
Support level: 0.9820, 0.9775
CrudeOIL, H4: Crude oil price was traded lower following prior retrace from 54.45. MACD which illustrate diminished upward momentum suggests its price to be traded lower in short-term as technical correction.
Resistance level: 54.45, 55.55
Support level: 53.00, 51.60
GOLD_, H4: Gold price remains traded within a sideways channel formation. MACD which illustrate diminished upward momentum suggests its price to be traded lower in short-term as technical correction.
Resistance level: 1496.00, 1511.00
Support level: 1484.05, 1477.00