08 December 2020 Afternoon Session Analysis
Pound recoup losses following last effort for Brexit deal.
During late Asian session, the pound sterling which traded against a basket of six major currency pairs have recovered some of its losses as U.K Prime Minister Boris Johnson is heading to Brussels in a last-ditch effort to achieve Brexit deal. Following a joint statement from both parties, Boris Johnson and European Commission President Ursula von der Leyen will try to solve the remaining differences on a post-Brexit trade deal in the coming days. As of now, some of the critical issues level playing field, governance and fisheries. Both sides have upped the mixed messages on post-Brexit deal progress recently which casting doubt among investors on whether any progress has been made. Market will now focus on the meeting and its conclusion in order to attain more signal for the pound sterling. At the time of writing, GBP/USD rose 0.02% to 1.3349.
On the other hand, crude oil price slips 0.46% to $45.40 per barrel as of writing following concerns on spike in cases as well as supply. News of record-high COVID-19 cases in the U.S. and spikes in places like Germany and South Korea, which spurred new lockdowns and have increased fears that demand could plummet in the short term. Adding more to the pressure was Iran may be getting ready to boost production within three months. Next, gold price soars 0.31% to $1868.34 a troy ounce at the time of writing following dollar weakness and decreasing risk appetite.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:00 USD EIA Short-Term Energy Outlook
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 18:00 | EUR – German ZEW Economic Sentiment (Dec) | 54.5 | 51.5 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 90.60. MACD which illustrate bullish bias momentum suggest the dollar to extend its gains toward the resistance level at 91.10.
Resistance level: 91.10, 91.45
Support level: 90.60, 90.15
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3385. MACD which illustrates diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.3290.
Resistance level: 1.3385, 1.3470
Support level: 1.3290, 1.3195
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.2105. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level at 1.2105.
Resistance level: 1.2135, 1.2175
Support level: 1.2105, 1.2045
USDJPY, H1: USDJPY was traded higher following prior rebound from the support level at 104.00. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 104.35.
Resistance level: 104.35, 104.70
Support level: 104.00, 103.65
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7445. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 0.7400.
Resistance level: 0.7445, 0.7480
Support level: 0.7400, 0.7365
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the higher level. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 0.7015.
Resistance level: 0.7090, 0.7175
Support level: 0.7015, 0.6960
USDCAD, H1: USDCAD was traded lower following prior retracement from the resistance level at 1.2815. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.2770.
Resistance level: 1.2810, 1.2855
Support level: 1.2770, 1.2715
USDCHF, H1: USDCHF was traded higher following prior breakout above the previous resistance level at 0.8895. MACD which display bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 0.8945.
Resistance level: 0.8945, 0.8985
Support level: 0.8895, 0.8870
CrudeOIL, H1: Crude oil price was traded lower following prior breakout below the previous support level at 45.50. MACD which illustrate bearish bias momentum signal suggest the commodity to extend its losses toward the support level at 44.65.
Resistance level: 45.50, 46.65
Support level: 44.65, 43.95
GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1859.95. However, MACD which illustrate diminishing bullish momentum signal suggest the commodity to undergo technical correction in short term toward the lower level.
Resistance level: 1870.15, 1883.65
Support level: 1859.95, 1844.50