08 January 2021 Afternoon Session Analysis
Pound slumped amid national lockdown struggled UK economy.
Pound sterling which acting as one of the major currencies that being traded in the FX market dipped as market worries the ongoing national lockdown measure in UK may further burdened the UK economy on top of pandemic, dragging down the recovery pace in long-run. Earlier this week, UK Prime Minister decided to reimpose a lockdown in England as a more transmissible strain of virus fuelled a surge in infection in the country, collapsing the healthcare system in UK. According to the latest statistics, UK has reported 52,618 cases yesterday, making the total confirmed cases in UK close to 2.9 million thresholds, while the number of fatalities is rising in a speedy pace. With the backdrop of recent spike in infection numbers, investors are speculating that Bank of England (BoE) might bring the interest rate to negative territory earlier than expected, in order to combat the economic hit from the third national lockdown measure in UK. Other than that, it does not rule out the possibility that UK central bank may bring up more monetary and fiscal support onto the table in next month BoE meeting. As of now, GBP/USD down by 0.03% to 1.3559.
In the commodities market, the crude oil price surged by 0.12% to $50.86 per barrel as market worries diminished after Saudi Arabia voluntarily cut 1 million of oil production per day in upcoming two months while recent crude oil inventories in US showed a downward trend. Besides, gold price dropped 0.24% to $1909.20 a troy ounce amid dollar index strengthened.
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 |
| 21:30 | USD – Nonfarm Payrolls (Dec) | 245K | 100K | – |
| 21:30 | USD – Unemployment Rate (Dec) | 6.7% | 6.8% | – |
| 21:30 | CAD – Employment Change (Dec) | 62.1K | -5.0K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 89.90. MACD which illustrated diminishing bearish momentum suggest the index to extend its losses toward the support level at 89.60.
Resistance level: 89.90, 90.25
Support level: 89.60, 89.30
GBPUSD, H1: GBPUSD was traded higher lower following prior rebound from the support level at 1.3535. MACD which illustrated bullish momentum suggest the pair to be traded higher toward the resistance level at 1.3620.
Resistance level: 1.3620, 1.3710
Support level: 1.3535, 1.3470
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.2250. MACD which illustrated bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level at 1.2250.
Resistance level: 1.2300, 1.2335
Support level: 1.2250, 1.2205
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 103.70. However, MACD which illustrated diminishing bullish momentum suggest the pair to undergo technical retracement in short term.
Resistance level: 104.00, 104.35
Support level: 103.70, 103.35
AUDUSD, H1: AUDUSD was traded higher while currently testing the resistance level at 0.7770. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.7770.
Resistance level: 0.7770, 0.7820
Support level: 0.7735, 0.7680
NZDUSD, H1: NZDUSD was traded higher while currently testing the resistance level at 0.7265. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.7265.
Resistance level: 0.7265, 0.7305
Support level: 0.7235, 0.7185
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2695. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.2625.
Resistance level: 1.2695, 1.2770
Support level: 1.2625, 1.2530
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level at 0.8855. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.8855.
Resistance level: 0.8855, 0.8885
Support level: 0.8820, 0.8795
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 51.05. However, MACD which illustrated diminishing bullish momentum suggest the commodity to undergo technical correction in short term toward lower level.
Resistance level: 51.05, 51.85
Support level: 50.20, 49.40
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1910.00. However, MACD which illustrated diminishing bearish momentum suggest the commodity to undergo technical correction in short term toward higher level.
Resistance level: 1923.65, 1936.75
Support level: 1910.00, 1895.55