05 January 2022 Afternoon Session Analysis
Pound surged amid bullish data.
The Pound Sterling received bullish momentum yesterday following the United Kingdom unleashed upbeat economic data. According to Markit/CIPS, U.K. Manufacturing Purchasing Managers Index (PMI) came in at 57.9, exceeding the market forecast at 57.6. The UK Manufacturing production increased at the quickest pace in four months, buoyed by the increased intakes of new work, economic recovery as well as higher employment rate in UK region. Nonetheless, economist forecasted the upturn for the economic prospect in UK remains subdued compared to the middle of the year, amid supply chain disruption, Brexit difficulties and the possibility of further pandemic restrictions at home and overseas. Analysts speculated that the post-Brexit border controls on UK imports at the start of 2022 would bring further disruption, while the Omicron variant would add to severe uncertainty to the economic growth. As of writing, GBP/USD appreciated by 0.01% to 1.3530.
In the commodities market, the crude oil price depreciated by 0.53% to $77.00 per barrel as of writing amid technical correction. Nonetheless, the overall trend for the crude oil still remained bullish over the backdrop of upbeat inventory data yesterday. According to American Petroleum Institute, U.S. API Weekly Crude Oil Stock came in at -6.432M, better than the market forecast at -3.400M. On the other hand, the gold price appreciated by 0.06% to $1815.80 per troy ounces as of writing following United States released negative economic data, which spurring risk-off sentiment in the global financial market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:15 | USD – ADP Nonfarm Employment Change (Dec) | 534K | 390K | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | -3.576M | -2.800M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 95.65. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 96.85, 97.50
Support level: 95.65, 94.90
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3475. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3615.
Resistance level: 1.3615, 1.3690
Support level: 1.3475, 1.3350
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1345. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1345, 1.1440
Support level: 1.1235, 1.1175
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 116.10. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 116.10, 118.70
Support level: 112.95, 110.85
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.7175. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7365, 0.7535
Support level: 0.7175, 0.6995
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6840. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6840, 0.6920
Support level: 0.6710, 0.6570
USDCAD, Daily: USDCAD was traded higher following prior rebound from the support level at 1.2625. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.2825.
Resistance level: 1.2825, 1.2940
Support level: 1.2625, 1.2520
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9175. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9175, 0.9260
Support level: 0.9105, 0.9035
CrudeOIL, H1: Crude oil price was traded lower following prior retracement from the resistance level at 77.00. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 75.25.
Resistance level: 77.00, 79.00
Support level: 75.25, 72.65
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1814.90. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1814.90, 1830.55
Support level: 1786.30, 1762.20