22 January 2020 Afternoon Session Analysis
Pound sterling rose as employment data delivers.
Pound sterling extended its gains since yesterday over the backdrop of bullish employment data from the United Kingdom. As of writing, pair of GBP/USD ticked up 0.01% to 1.3043. According to UK Office for National Statistics, Average Earnings Index +Bonus for the month of November rose by 3.2%, slightly higher than forecast of 3.1%. On the other hand, Claimant Count Change for the month of December came in at 14.9K, significantly lower than forecast of 22.6K. Both data shows that employment market and wage growth remain resilient despite ongoing Brexit risks which looms over UK economy. However, gains on the pound sterling remains limited as traders speculate Bank of England (BoE) may cut their interest rate further after Retail Sales portrays significant downtrend since March 2019. In the other region, pair of USD/CAD rose 0.16% to 1.3089. Canadian dollar received bearish pressure following a slump in crude oil price – one of the main export commodity for Canada.
As for commodities, crude oil price depreciates by 0.22% to $58.08 per barrel. Oil futures experienced heavy selloff since early of the week as traders remained concern over increasing oil production from the United States. Otherwise, gold price depreciates by 0.30% to $1,553.08 a troy ounce due to lack of major market movements.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23.00 CAD BoC Monetary Policy Report
23.00 CAD BoC Rate Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17.30 | GBP – Retail Sales (YoY) (Dec) | 1.0% | 2.6% | – |
| 21.30 | CAD – Core CPI (MoM) (Dec) | -0.2% | – | – |
| 23.00 | USD – Existing Home Sales (MoM) (Dec) | 5.35M | 5.43M | – |
| 23.00 | CAD – BoC Interest Rate Decision | 1.75% | 1.75% | – |
Technical Analysis
DOLLAR_INDX, Daily：Dollar index was traded higher following prior breakout above the previous resistance level at 97.25. MACD which illustrate bullish bias momentum signal suggest the dollar to extend its gains toward the resistance level at 97.70.
Resistance level: 97.70, 98.20
Support level: 97.25, 96.85
GBPUSD, H1: GBPUSD was traded lower while currently testing the support level at 1.3035. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it successfully breakout below the support level at 1.3035.
Resistance level: 1.3100, 1.3165
Support level: 1.3035, 1.2965
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1110. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.1075.
Resistance level: 1.1110, 1.1160
Support level: 1.1075, 1.1035
USDJPY, H4: USDJPY was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 110.20.
Resistance level: 110.20, 110.55
Support level: 109.65, 109.25
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.6850. MACD which illustrate bearish momentum suggest the pair to extend its losses toward the support level at 0.6815.
Resistance level: 0.6850, 0.6880
Support level: 0.6815, 0.6770
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.6600. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 0.6570.
Resistance level: 0.6600, 0.6620
Support level: 0.6570, 0.6535
USDCAD, Daily: USDCAD was traded higher while currently testing the resistance level at 1.3085. MACD which illustrate bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 1.3085.
Resistance level: 1.3085, 1.3145
Support level: 1.3025, 1.2960
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9690. MACD which illustrate bullish momentum suggest the pair to extend its gains toward the resistance level at 0.9725.
Resistance level: 0.9725, 0.9770
Support level: 0.9690, 0.9665
CrudeOIL, H1: Crude oil was traded lower following prior retracement from the resistance level at 58.60. MACD which illustrate diminishing bullish momentum signal with the formation of death cross suggests the commodity to extend its losses toward the support level at 57.55.
Resistance level: 58.60, 59.70
Support level: 57.55, 56.80
GOLD_, H1: Gold price was traded lower while currently testing the support level at 1551.10. MACD which illustrate bearish bias momentum suggest the commodity to extend its gains after its candle successfully close below the support level at 1551.10.
Resistance level: 1561.85, 1572.10
Support level: 1551.10, 1538.45