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