22 October 2019 Morning Session Analysis
Market remains flat while waiting for more signals.
Pound sterling continues to hover near 5 months high as investors adopt wait-and-see approach while waiting for further developments with regards to Brexit. On yesterday, sterling received some bearish pressure after Speaker of the House of Commons John Bercow said that there will be no vote upon the revised Brexit agreement as he deemed it would be “repetitive and disorderly to do so”. However, market sentiment was invigorated after House of Commons leader Rees-Mogg announced that a second reading of the agreement will take place on Tuesday, which may lead to a vote within the Parliament. In the other region, dollar index continues to be traded flat as market participants ponder upon the developments in trade war. White House economic adviser Larry Kudlow said that tariffs scheduled for December can be withdrawn if trade negotiations in between US and China goes well. His comments came after Chinese Vice Premier Liu He said last weekend that “substantial progress” was being made and argued that ending the trade war would benefit both US and China. As of writing, pair of GBP/USD was up 0.06% to 1.2965 while the dollar index rose 0.04% to 96.99.
In the commodities market, crude oil price slumped 0.17% to $53.38 per barrel. Oil prices continues to oscillate within a tight range as traders waits for more signals with regards to trade war and US inventories data. On the other hand, gold price was traded flat near $1,484.36 a troy ounce as traders monitor further developments with regards to Brexit and US-China trade negotiation.
Today’s Holiday Market Close
Time Market Event
All Day JPY Japan – Holiday
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | CAD – Core Retail Sales (MoM) (Aug) | -0.1% | 0.1% | – |
| 22:00 | USD – Existing Home Sales (Sep) | 5.49M | 5.45M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior closure below 97.15. MACD which illustrate bearish signal suggests the index to extend its losses, towards the direction of 96.70.
Resistance level: 97.15, 97.60
Support level: 96.70, 96.10
GBPUSD, H4: GBPUSD was traded lower following prior retrace from 1.3035. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 1.2950.
Resistance level: 1.3035, 1.3180
Support level: 1.2950, 1.2820
EURUSD, H4: EURUSD was traded lower while currently testing at the support of 1.1145. MACD which has formed a bearish signal suggests the pair to extend its losses after closing below the support level.
Resistance level: 1.1180, 1.1205
Support level: 1.1145, 1.1085
USDJPY, H4: USDJPY was traded higher following prior rebound from the lower levels. MACD which begins to form bullish signal suggests the pair to be traded higher in short-term.
Resistance level: 108.75, 109.30
Support level: 108.45, 108.10
AUDUSD, Daily: AUDUSD was traded higher following prior rebound from the lower levels. MACD which illustrate bullish signal suggests the pair to extend its gains, towards the direction of 0.6910.
Resistance level: 0.6910, 0.6980
Support level: 0.6815, 0.6750
NZDUSD, H1: NZDUSD was traded higher following prior rebound from the 20-MA line (red). MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term.
Resistance level: 0.6410, 0.6425
Support level: 0.6370, 0.6340
USDCAD, Weekly: USDCAD was traded lower following prior retrace from 1.3285. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 1.3050.
Resistance level: 1.3285, 1.3430
Support level: 1.3050, 1.2860
USDCHF, H4: USDCHF was traded higher following prior rebound from the lower level. MACD which has formed bullish signal suggests the pair to extend its gains after closing above 0.9865.
Resistance level: 0.9865, 0.9925
Support level: 0.9820, 0.9775
CrudeOIL, H4: Crude oil price remains traded within a sideways channel formation. MACD which illustrates bearish signal suggests its price to be traded lower in short-term.
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 bearish signal suggests its price to extend losses after closing below 1484.05.
Resistance level: 1496.00, 1511.00
Support level: 1484.05, 1477.00