10 December 2019 Afternoon Session Analysis
Sterling surged, eyed on Britain general election.
Pound Sterling remained strong on yesterday, buoyed by opinion polls that point to the ruling Conservative Party winning Britain’s general election. Indeed, such positive sentiment had provided some bullish momentum for the Pound Sterling as investors expected that the three-and-a-half years of political uncertainties would be ended if the Conservative Party winning the Britain’s general election. However, some analysts predicted that the gains experienced by the Pound Sterling could be limited in the future amid a new negotiation of trade deal with European Union would be needed following formally Brexit on 31st January 2020, spurring uncertainties over the UK future economic outlook. At this time, investors would continue to scrutinize the latest economic data and the updates with regards of the Britain’s general election in order to obtain further trading signal and gauge the likelihood movement of the pair. On the other hand, AUD/USD surged following the positive housing data from the Australia region was released. According to Australian Bureau of Statistics, Australia House Price Index (HPI) came in at 2.4%, exceeding the economist forecast at 0.5%. As of writing, GBP/USD appreciated by 0.08% to 1.3152 while AUD/USD surged 0.17% to 0.6832.
In the commodities market, crude oil price slumped yesterday amid to the economic data from China had shown that the Chinese exports declined for a fourth-straight month, weighing on the outlook for the global economy. On the other hand, gold price was traded flat yesterday as investors awaited a fresh development with regards of for trade wars in order to receive further trading signals and gauge the likelihood movement of the safe-haven asset. As of writing, crude oil price surged 0.07% to $58.91 per barrels and gold price depreciated by 0.09% to $1460.21 per troy ounces.
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 |
| 17:30 | GBP – GDP (QoQ) (Q3) | 0.3% | -0.2% | – |
| 17:30 | GBP – Manufacturing Production (MoM) (Oct) | -0.4% | 0.1% | – |
| 18:00 | EUR – German ZEW Economic Sentiment (Dec) | -2.1 | 1.1 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level 97.55. MACD which illustrate diminishing bullish momentum signal suggest the dollar to extend its losses after it breaks below the support level.
Resistance level: 98.20, 98.90
Support level: 97.55, 96.95
GBPUSD, H4: GBPUSD was traded in sideway channel. However, MACD which illustrate bearish momentum signal suggest the pair to be traded lower in short term towards the support level 1.3090.
Resistance level: 1.3190, 1.3295
Support level: 1.3090, 1.2970
EURUSD, H4: EURUSD was traded higher while currently testing near the resistance level 1.1080. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains after it breaks above the resistance level 1.1080.
Resistance level: 1.1080, 1.1170
Support level: 1.0990, 1.0925
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance level 108.65. MACD which illustrate bullish bias signal with the formation of golden cross suggest the pair to extend its gains after it breaks above the resistance level 108.65.
Resistance level: 108.65, 109.05
Support level: 108.25, 107.90
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.6825. MACD which illustrate ongoing bearish momentum suggest the pair to extend its losses after it breaks below the support level 0.6825.
Resistance level: 0.6880, 0.6925
Support level: 0.6825, 0.6770
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance level 0.6585. However, MACD which illustrate bearish momentum signal suggest the pair to experience a technical correction in short term towards the support level 0.6500.
Resistance level: 0.6585, 0.6650
Support level: 0.6500, 0.6435
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level 1.3260. MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement towards the support level 1.3185.
Resistance level: 1.3260, 1.3320
Support level: 1.3185, 1.3125
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level 0.9915. MACD which illustrate bearish bias signal with the starting formation of death cross suggest the pair to extend its retracement towards the support level 0.9845.
Resistance level: 0.9915, 0.9980
Support level: 0.9845, 0.9800
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level 58.55. However, MACD which illustrate bearish momentum signal with the formation of death cross suggest the commodity to be traded lower in short term towards the support level 58.55.
Resistance level: 59.70, 60.85
Support level: 58.55, 57.50
GOLD_, H4: Gold price was traded flat near the resistance level 1463.70. However, MACD which display diminishing bearish momentum signal suggest the commodity to be traded higher after it breaks above the resistance level 1463.70.
Resistance level: 1463.70, 1497.00
Support level: 1450.75, 1432.40