4 September 2019 Morning Session Analysis
Extension on Brexit deadline again?
Pound sterling rebounds from its lowest level after plunging to a multi decade low level around 1.1955 against dollar amid Brexit dispute which rattles the market. Yesterday, Boris Johnson’s government has lost their majority in House of Common against opposition parties, voted 301 to 326. The alliance which formed by opposition parties and 21 of Conservatives party’s member have taken one step forward, took over the control of House of common in order to cease the hard Brexit process from Boris Johnson. After parliamentary suffer a huge defeat, another round of vote on legislation is expected to be held as early as today. If such vote passed by parliaments, UK prime minister will have to seek for extension on Brexit deadline from EU, to 31th January 2020. On the Boris Johnson side, he reiterated that UK must leave the Eurozone before the deadline as extension on Brexit for indefinite period would only put UK economy nearer to the recession risk. Moreover, Johnson revealed that he is ready to snap for an election in order to reshuffle the members in House of Common, kicking out the rebels and keep the pro-hard Brexit supporters. During Asian early trading session, the pair of GBP/USD quoted up 0.05% to 1.2090.
As for commodities, oil price fall 0.01% to $53.95 per barrel amid deepening of trade war sent oil lower. Yesterday, economic data showed sign of slowing down in US manufacturing sectors, the demand of oil by US manufacturers decreased as US economy hit badly by recent escalation of trade dispute. Besides, gold price rose 0.10% to $1549.25 a troy ounce as Brexit uncertainty urged the investor to seek for safe haven asset.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 CAD BoC Rate Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Composite PMI (Aug) | 53.4 | 53.4 | – |
| 16:30 | GBP – Services PMI (Aug) | 50.7 | – | – |
| 22:00 | CAD – BoC Interest Rate Decision | 1.75 | 1.75 | – |
| 04:30
(05th) |
CrudeOIL- API Weekly Crude Oil Stock | -11.100M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from its higher levels. MACD which illustrate bearish signal suggests the index to be traded lower in short-term as technical correction after closing below the 20-MA line (red).
Resistance level: 99.00, 100.40
Support level: 97.80, 96.95
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support of 1.1975. MACD which illustrate bullish signal suggests the pair to be traded higher after closing above the 20-MA line (red).
Resistance level: 1.2170, 1.2325
Support level: 1.2020, 1.1975
EURUSD, Daily: EURUSD was traded higher following prior rebound from the lower level of descending channel. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1070, 1.1210
Support level: 1.0870, 1.0800
USDJPY, H4: USDJPY remains traded within a sideways channel formation. MACD which illustrate bearish signal suggests the pair to be traded lower, towards the direction of support level near 105.60.
Resistance level: 106.15, 106.80
Support level: 105.60, 105.05
AUDUSD, H4: AUDUSD was traded higher after successfully breaking the downward trendline. MACD which illustrate bullish signal suggests the pair to extend its gains, towards the direction of 0.6795.
Resistance level: 0.6795, 0.6855
Support level: 0.6750, 0.6695
NZDUSD, H1: NZDUSD was traded higher while currently testing at the resistance of 0.6340. MACD which illustrate bullish signal suggests the pair to extend its gains after closing above the target at 0.6340.
Resistance level: 0.6340, 0.6355
Support level: 0.6320, 0.6300
USDCAD, H4: USDCAD was traded lower following prior retracement from the upper level of ascending wedge. MACD which begins to form a death cross signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3335, 1.3375
Support level: 1.3280, 1.3255
USDCHF, H4: USDCHF was traded lower following prior retracement from its higher levels. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 0.9820.
Resistance level: 0.9890, 0.9970
Support level: 0.9820, 0.9775
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level of 53.00. MACD which illustrate diminished downward momentum suggests its price to be traded higher in short-term as technical correction.
Resistance level: 54.45, 55.55
Support level: 53.00, 51.60
GOLD_, H1: Gold price was traded higher while currently testing at the strong resistance near 1550.00. However, MACD which illustrate diminished upward momentum suggests its price to be traded lower in short-term as technical correction.
Resistance level: 1550.00, 1560.00
Support level: 1543.00, 1533.00