02 June 2020 Afternoon Session Analysis
Pound sterling soars following signal of compromise from UK in Brexit.
The pound sterling which traded against the greenback and other currency pairs continue to rally after UK signalling compromise on fisheries and trade rules. According to the reports from the Times, UK is expected to signal compromise on fisheries and “level playing field” trade rules if the European Union backs off from its “maximalist” demands on regulatory alignment and fishing access. Besides that, the chief negotiator for the EU, Micheal Barnier has informed the European ambassadors that he believes the UK government wants progress over the next few weeks. David Frost, the prime minister’s negotiator, is also keen to counter the perception that negotiations are deadlocked and that a free trade deal with the EU cannot be done this year. The news has increased optimism on progress of Brexit, thus triggered a strong demand for the pound sterling. At the time of writing, GBP/USD rose 1.2487.
In the commodities market, crude oil price remains steady and edge higher 0.06% to $35.52 per barrel as of writing following expectation of extend output cut. OPEC+ producers are considering extending their production cut of 9.7 million barrels per day (bpd) or about 10% of global output, to July or August at an online meeting likely on June 4. On the other hand, gold price rose 0.04% to $1739.33 a troy ounce at the time of writing following dollar weakness and ongoing uncertainty between U.S and China
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 |
| 12:30 | AUD – RBA Interest Rate Decision (Jun) | 0.25% | 0.25% | – |
| 04:30
(3rd) |
CrudeOIL – API Weekly Crude Oil Stock | 8.700M | – | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower while currently testing the support level at 97.65. However, MACD which illustrated increasing bullish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 98.20, 99.10
Support level: 97.65, 96.95
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level at 1.2525. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2420.
Resistance level: 1.2525, 1.2635
Support level: 1.2420, 1.2315
EURUSD, H1: EURUSD was traded within a range while currently near the resistance level at 1.1150. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1090.
Resistance level: 1.1150, 1.1210
Support level: 1.1090, 1.1025
USDJPY, H1: USDJPY was traded higher following prior rebound from the support level at 107.45. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 107.85.
Resistance level: 107.85, 108.35
Support level: 107.45, 107.15
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.6805. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6805, 0.6920
Support level: 0.6655, 0.6530
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level 0.6295. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6295, 0.6435
Support level: 0.6140, 0.5925
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3540. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3735, 1.3890
Support level: 1.3540, 1.3290
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.9595. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9735, 0.9835
Support level: 0.9595, 0.9505
CrudeOIL, H1: Crude oil price was traded within a range while currently testing the resistance level at 35.60. MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher after it successfully breakout above the resistance level.
Resistance level: 35.60, 36.75
Support level: 32.45, 34.35
GOLD_, H1: Gold price was traded within a range while currently testing the resistance level at 1743.00. MACD which illustrated increasing bearish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1743.00, 1750.95
Support level: 1732.60, 1724.30