06 May 2020 Afternoon Session Analysis
Pound sterling weakened amid Brexit uncertainty.
The pound sterling which traded against the dollar and other currency pairs remains weak and edge lower during late Asian session following signs of little progress on trade talk between U.K and E.U. According to recent reports, Ireland’s Foreign Minister Simon Coveney have expressed his concerns that the U.K. and EU are likely headed for a collision on Brexit talks unless significant progress is made on negotiations. As U.K have been persistent that it will not seek negotiation extension beyond the transition period, concern regarding U.K leaving the EU without any potential trade deal continue to increase which could heighten the economic hardships for the U.K. Thus, the uncertainty continues to weigh on the pound sterling. Investors will continue to focus on the development where both countries still have until the end of June to agree on extend trade talks beyond the end of the year. At the time of writing, GBP/USD slips 0.04% to 1.2429.
In the commodities market, crude oil price gave up some of its gains and retreats 1.68% to $24.43 per barrel as of writing following oversupply worries persist. Market back to cautious mode as investors were warned that global storage could be filled in weeks with the road to recovery long and uncertain. On the other hand, gold price slips 0.21% to $1702.41 a troy ounce at the time of writing following dollar strength.
Today’s Holiday Market Close
Time Market Event
All Day JPY Constitution Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Construction PMI (Apr) | 39.3 | 22.0 | – |
| 20:15 | USD – ADP Nonfarm Employment Change (Apr) | -27K | -20,050K | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 8.991M | 8.125M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 99.85. However, MACD which illustrated diminishing bullish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 99.85, 100.65
Support level: 98.70, 97.75
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.2420. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2640, 1.2815
Support level: 1.2420, 1.2220
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.0830. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.0875, 1.0925
Support level: 1.0830, 1.0770
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 106.30. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 107.40, 108.45
Support level: 106.30, 105.55
AUDUSD, H4: AUDUSD was traded within a range while currently testing the support level at 0.6405. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6540, 0.6680
Support level: 0.6405, 0.6235
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6070. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6070, 0.6130
Support level: 0.6000, 0.5940
USDCAD, H1: USDCAD was traded within a range while currently near the support level at 1.4015. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.4155, 1.4230
Support level: 1.4015, 1.3875
USDCHF, Daily: USDCHF was traded higher following prior rebound from the support level at 0.9780. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.9780
Resistance level: 0.9780, 0.9880
Support level: 0.9585, 0.9495
CrudeOIL, Daily: Crude oil price was traded higher while currently testing the resistance level at 26.10. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 26.10, 33.75
Support level: 17.20, 9.95
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1712.25. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 1696.75.
Resistance level: 1712.25, 1733.25
Support level: 1696.75, 1673.75