83% of retail investor accounts lose money when trading CFDs with this provider.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

04 June 2021                       Afternoon Session Analysis

 

GBP/USD weakens on strengthening Dollar.

The pair of GBP/USD slumped on yesterday amid the strengthening US Dollar. Nonetheless, the overall prospect economic for the United Kingdom remained resilient over the backdrop of the string of upbeat economic data as well as positive development of Covid-19 vaccination program. According to Markit Economics, U.K. Composite Purchasing Managers’ Index (PMI) notched up significantly from the previous reading of 62.0 to 62.9, exceeding the market forecast at 62.0. Meanwhile, U.K. Services Purchasing Managers Index (PMI) came in at 62.9, which also exceeding the market forecast at 61.8. Nonetheless, as for now investors would continue to scrutinize the G7 finance meeting in order to gauge the likelihood movement for the currency. According to Reuters, Ministers from U.S., Japan, France, Canada, Germany and Italy will attend the two-day meeting at Lancaster House in London to discuss measures to tackle climate change as well as efforts to secure an international agreement on how digital companies are taxed. As of writing, GBPUSD surged 0.03% to 1.4101.

 

In the commodities market, the crude oil price slumped 0.33% to $68.75 as of writing. The oil market edged lower amid the slow roll-out of vaccinations and high infections in countries like Brazil and India had spurred negative prospect for the crude oil demand. On the other hand, the gold price slumped 0.13% to $1868.30 per troy ounces as of writing amid appreciation of US Dollar.

 

Today’s Holiday Market Close

Time                       Market                  Event

N/A

 

Today’s Highlight Events

Time                       Market                  Event

15:00                     NZD                       RBNZ Gov Orr Speaks

19:00                     USD                       Fed Chair Powell Speaks

19:00                     EUR                       ECB President Lagarde Speaks

 

 

Today’s Highlight Economic Data

Time Nation & Data Previous Forecast Actual
16:30 GBP – Construction PMI (May) 61.6 62.0
20:30 USD – Nonfarm Payrolls (May) 266K 650K
20:30 USD – Unemployment Rate (May) 6.1% 5.9%
20:30 CAD – Employment Change (May) -207.1K -22.5K
22:00 CAD – Ivey PMI (May) 60.6

 

Technical Analysis

DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level at 90.25. MACD which illustrated increasing bullish momentum suggest the dollar to extend its gains towards the resistance level 90.75.

 

Resistance level: 90.75. 91.40

Support level: 90.25, 89.50

 

GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level 1.4100. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses towards the support level 1.4015.

 

Resistance level: 1.4100, 1.4210

Support level: 1.4015, 1.3920

 

EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.2150. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2050.

 

Resistance level: 1.2150, 1.2255

Support level: 1.20565 1.1995

 

USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 110.10. However, MACD which illustrated diminsihing bullish momentum suggest the pair to experience a technical correction in short term back towards the level 110.10.

 

Resistance level: 110.50, 110.90

Support level: 110.10, 109.70

 

AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level 0.7865. MACD which illustrate increasing bearish momentum signal suggest the pair to extend its losses towards the support level 0.7590.

 

Resistance level: 0.7865, 0.7805

Support level: 0.7590, 0.7515

 

NZDUSD, H4: NZDUSD was traded flat while currently testing the resistance level 0.7150. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher after it breaks above the level.

 

Resistance level: 0.7150, 0.7300

Support level: 0.7065, 0.6965

 

USDCAD, H4: USDCAD remain traded in a sideway channel while currently testing near the resistance level 1.2140. However, MACD which illustrate ongoing bullish momentum signal suggest the pair to be traded higher after it breaks above the resistance level.

 

Resistance level: 1.2140, 1.2265

Support level: 1.2030, 1.1925

 

USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level 0.9020. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains towards the resistance level 0.9095.

 

Resistance level: 0.9095, 0.9165

Support level: 0.9020, 0.8940

 

CrudeOIL, H4: Crude oil price was traded flat near the resistance level 69.40. However, MACD which illustrate bearish momentum signal suggest the commodity to be traded lower towards the support level 66.45.

 

Resistance level: 69.40, 72.35

Support level: 66.45, 64.25

 

GOLD_, H4: Gold price was traded lower following recent breakout below the previous support level of 1886.35. MACD which illustrate bearish bias signal suggest the commodity to extend its losses towards the support level 1853.85

 

Resistance level: 1886.35, 1911.05

Support level: 1853.85, 1820.75