06 January 2021 Morning Session Analysis
Pound remained bearish amid new lockdown measures.
Pound Sterling was traded higher on yesterday but the overall momentum for the Pound remained bearish as a new lock-down measures had outweighed the market optimism toward the post-Brexit trade deal with the European Union. According to Reuters, the Prime Minister Boris Johnson had ordered UK into another national lockdown in order to combat the spiking numbers of the Covid-19 cases before a vaccine programme reaches a critical mass. The new measures could cost about 10% of economic output within a short-term, which dragging down the appeal of the Pound Sterling. Market participants expected that such negative economic outlook would trigger the Bank of England to implement more expansionary monetary policy while cutting its benchmark interest rate as early as May in order to boost back the economic progression in the United Kingdom. Nonetheless, investors would continue to scrutinize the latest updates with regards of the Covid-19 development to gauge the likelihood movement for the currency. As of writing, GBP/USD depreciated by 0.06% to 1.3625.
In the commodities market, the crude oil price slumped 0.10% to $49.75 per barrel as of writing amid technical correction. Though, the oil price edged higher on yesterday over the positive development with regards of the OPEC+ meeting on yesterday. Besides, the U.S. API Weekly Crude Oil Stock had also came in at -1.663M, which fared better than expectation at -1.500M, according to American Petroleum Institute. On the other hand, the gold price appreciated by 0.05% to $1951.05 per troy ounces as of writing amid the spiking numbers of the Covid-19 infections had continue to insinuating market demand on the safe-haven commodity.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:30 GBP BoE Gov Bailey Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Composite PMI (Dec) | 50.7 | 50.7 | – |
| 17:30 | GBP – Services PMI (Dec) | 49.9 | 49.9 | – |
| 21:15 | USD – ADP Nonfarm Employment Change | 307K | – | – |
| 23:30 | USD – Crude Oil Inventories | -6.065M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 89.35 MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 89.85, 90.50
Support level: 89.35, 88.55
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.3580. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.3685.
Resistance level: 1.3685, 1.3780
Support level: 1.3580, 1.3495
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.2305. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2305, 1.2450
Support level: 1.2205, 1.2130
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 103.05. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 102.00.
Resistance level: 103.05, 103.75
Support level: 102.00, 101.25
AUDUSD, Weekly: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7570. However, MACD which illustrated bullish momentum suggest the pair to extend its gains toward resistance level at 0.7860.
Resistance level: 0.7860, 0.8135
Support level: 0.7570, 0.7130
NZDUSD, Weekly: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.7110. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7340.
Resistance level: 0.7340, 0.7550
Support level: 0.7110, 0.6905
USDCAD, Weekly: USDCAD was traded lower while currently testing the support level at 1.2665. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2980, 1.3295
Support level: 1.2665, 1.2415
USDCHF, Weekly: USDCHF was traded lower while currently testing the support level at 0.8750. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9065, 0.9285
Support level: 0.8750, 0.8370
CrudeOIL, Weekly: Crude oil price was traded higher while currently testing the resistance level at 50.05. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 50.05, 61.85
Support level: 41.75, 33.45
GOLD_, Daily: Gold price was traded higher following prior breakout above the previous resistance level at 1930.10. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 1959.45.
Resistance level: 1959.45, 1987.90
Support level: 1883.65, 1850.45