08 February 2021 Afternoon Session Analysis
Pound remains strong following BoE boost outlook.
During late Asian session, the pound sterling which traded against the dollar and other currency pairs have rose following last week policy decision from BoE. The BoE left its monetary policy unchanged as expected, and lowered its Q1 2021 growth forecasts for Britain. However, markets were most excited about the bank’s indication that it was giving no signals on negative interest rates. BoE Governor Andrew Bailey have denied market speculation on interest rate cuts towards negative levels for the foreseeable future. He stressed that they are still studying on the approach and it will not be implemented for the next 6 months. At the same time, the market also remains positive on vaccine rollout in the country where UK vaccine rollout success could lead to a brighter second half of the year. At the time of writing, GBP/USD rose 0.03% to 1.3728.
In the commodities market, crude oil price extends its gains and soars 0.47% to $57.30 per barrel as of writing following supply cuts among key producers. Saudi Arabia’s pledge of extra supply cuts in February and March on the back of reductions by other members of the OPEC and its allies, including Russia, is helping to balance global markets and tighten global supply. On the other hand, gold price edge higher 0.06% to $1811.88 a troy ounce at the time of writing following ongoing dollar weakness.
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while testing the support level 90.90. MACD which illustrate ongoing bearish momentum signal suggest the dollar to extend its losses after it breaks below the support level.
Resistance level: 92.00, 93.00
Support level: 90.90, 90.00
GBPUSD, H4: GBPUSD remain traded in a sideway channel while currently testing the resistance level 1.3745. However, MACD which illustrate diminishing bullish momentum suggest the pair to experience a short-term technical correction in short term towards the support level 1.3555.
Resistance level: 1.3745, 1.3895
Support level: 1.3555, 1.3440
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level 1.2055. However, MACD which illustrate starting of diminishing bullish momentum suggest the pair to be traded lower as a short-term technical correction towards the support level 1.1905.
Resistance level: 1.2055, 1.2180
Support level: 1.1905, 1.1770
USDJPY, H4: USDJPY was traded lower following recent retracement from the resistance level 105.70. MACD which illustrate bearish momentum signal suggest the pair to extend its retracement in short term towards the support level 105.15.
Resistance level: 105.70, 106.10
Support level: 105.15, 104.50
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level 0.7655. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains towards the resistance level 0.7785.
Resistance level: 0.7785, 0.7885
Support level: 0.7655, 0.7555
NZDUSD, H4: NZDUSD remain traded in a sideway channel. However, MACD which illustrate bullish momentum signal with the recent formation of golden cross suggest the pair to be traded higher towards the resistance level 0.7235.
Resistance level: 0.7235, 0.7310
Support level: 0.7110, 0.7010
USDCAD, H4: USDCAD was traded lower following recent retracement from the resistance level 1.2830. MACD which illustrate bearish momentum signal suggest the pair to extend its losses towards the support level 1.2665.
Resistance level: 1.2830, 1.2955
Support level: 1.2665, 1.2540
USDCHF, H4: USDCHF was traded lower following recent breakout below the previous support level 0.9000. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses towards the support level 0.8920.
Resistance level: 0.9000, 0.9090
Support level: 0.8920, 0.8840
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level 57.55. However, MACD which illustrate diminishing bullish momentum signal suggest the commodity to be traded lower as a technical correction towards the support level 56.00
Resistance level: 57.55, 59.55
Support level: 56.00, 53.90
GOLD_, H4: Gold price was traded higher while currently testing the resistance level 1815.15. MACD which illustrate bullish momentum signal with the recent formation of golden cross suggest the commodity to extend its gains after it breaks above the resistance level.
Resistance level: 1815.15, 1859.30
Support level: 1769.75, 1737.95