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3 October 2022                  Morning Session Analysis

 

Pound rallied amid an unexpected reversal from the economic downturn.

The Pound, which was one of the biggest currencies markets traded by global investors, surged after the new economic figure showed a reversal from recession last Friday. According to the Office for National Statistics, the British economy grew by 0.2% in the second quarter, contrary to the consensus forecast of -0.1%, mirroring that the UK economy is not in recession while against the prediction of recession by the Bank of England earlier this month. However, the gains in the Pound market were limited as the economy was still far below its pre-pandemic peak, while the overall picture of the UK economy is still in the worst shape. Going forward, the market participants would continue to put their attention on the upcoming economic data and the new government stimulus plan to scrutinize the further movement of the currency. As of writing, the pair of GBP/USD is up by 0.11% to 1.1170.

 

In the commodities market, the crude oil price edged up 2.87% to $82.00 per barrel following the depreciation of the US dollar, which boosted the shininess of oil products. Besides, the gold prices appreciated by 0.20% to $1664.40 per troy ounce following the weakening of the dollar index.

 

Today’s Holiday Market Close

Time                       Market                  Event

All Day                   CNY                                        National Day

 

Today’s Highlight Events

Time                       Market                  Event

N/A

 

Today’s Highlight Economic Data

Time Nation & Data Previous Forecast Actual
15:55 EUR – German Manufacturing PMI (Sep) 48.3 48.3
16:30 GBP – Manufacturing PMI (Sep) 48.5 48.5
22:00 USD – ISM Manufacturing PMI (Sep) 52.5 51.9

 

 

Technical Analysis

DOLLAR_INDX, Daily: Dollar index was traded lower following a breakout below the previous support level at 113.30. MACD which illustrated diminishing bullish momentum suggests the index to extend its losses toward the support level at 111.25.

 

Resistance level: 113.30, 115.00

Support level: 111.25, 109.00

 

GBPUSD, Daily: GBPUSD was traded higher while currently testing the resistance level at 1.1185. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.

 

Resistance level: 1.1185, 1.1350

Support level: 1.1050, 1.0870

 

EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level at 0.9830. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.

 

Resistance level: 0.9830, 0.9910

Support level: 0.9685, 0.9585

 

USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 144.95. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.

 

Resistance level: 144.95, 145.85

Support level: 144.55, 143.75

 

AUDUSD, Daily: AUDUSD was traded lower following prior breakout below the previous support level at 0.6430. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.6285.

 

Resistance level: 0.6430, 0.6530

Support level: 0.6285, 0.6165

 

NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.5625.  MACD which illustrated bearish bias momentum suggest the pair to extend losses toward the support level at 0.5560.

 

Resistance level: 0.5625, 0.5710

Support level: 0.5560, 0.5500

 

USDCAD, Daily: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3715. MACD which illustrated bullish bias momentum suggests the pair to extend gains toward the resistance level at 1.3855.

 

Resistance level: 1.3855, 1.4000

Support level: 1.3715, 1.3600

 

USDCHF, Daily: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9825. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.9920.

 

Resistance level: 0.9920, 1.0030

Support level: 0.9825, 0.9750

 

CrudeOIL, Daily: Crude oil price was traded higher while currently testing the downward trendline. MACD which illustrated diminishing bearish momentum suggests the commodity to extend its gains after it successfully breakout above the downward trendline.

 

Resistance level: 86.15, 89.45

Support level: 80.60, 76.70

 

GOLD_, H4: Gold price was traded higher following prior rebound from the lower level. However, MACD which illustrated diminishing bullish momentum suggest the commodity to undergo technical correction in short term.

 

Resistance level: 1677.75, 1693.35

Support level: 1653.90, 1636.10