10 December 2020 Afternoon Session Analysis
Pound slips as Brexit risk intensifies.
During late Asian session, the pound sterling which traded against the greenback and other currency pairs have continue to experience selling pressure following Brexit deadlock remains unsettled after meeting. According to the EU chief executive, EU and UK remained “far apart” on Brexit trade deal. Following the impasse, UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen have agreed that both sides will have until Sunday to take a “firm decision” about the future of trade talks. Bank of England Governor Andrew Bailey has warned that a no-deal Brexit would may cause damage in long term to Britain’s economy than the COVID-19 pandemic and the impact of the change might be felt for decades. Due to the increasing risk of hard-Brexit, investors slowly straying away from the pound sterling. At the time of writing, GBP/USD slips 0.24% to 1.3360.
In the commodities market, crude oil price remains steady and edge higher 0.33% to $45.80 per barrel as of writing following vaccine rollout and concerns over Iraq oilfield attack. As vaccination process have started on certain countries, optimism over vaccine continue to provide support for the black commodity. On top of that, Oil prices were also boosted by some nervousness after two wells at a small oilfield in northern Iraq were set ablaze in what the government called a “terrorist attack” and could potentially affect oil production. On the other hand, gold price slips 0.05% to $1839.53 a troy ounce at the time of writing follow dollar rebound.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:45 EUR ECB Monetary Policy Statement
21:30 EUR ECB Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | GBP – GDP (MoM) | 1.1% | – | – |
| 17:30 | GBP – Manufacturing Production (MoM) (Oct) | 0.2% | 0.2% | – |
| 20:45 | EUR – ECB Interest Rate Decision (Dec) | 0.00% | – | – |
| 21:30 | USD – Core CPI (MoM) (Nov) | 0.2% | 0.1% | – |
| 21:30 | USD – Initial Jobless Claims | 712K | 725K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 91.10. MACD which illustrate bullish bias momentum suggest the dollar to extend its gains after it successfully breakout above the resistance level.
Resistance level: 91.10, 91.45
Support level: 90.60, 90.15
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support 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, H1: EURUSD was traded higher following prior rebound from the support level at 1.2075. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.2105.
Resistance level: 1.2105, 1.2135
Support level: 1.2075, 1.2045
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 104.35. MACD which illustrate bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 104.35, 104.70
Support level: 104.00, 103.65
AUDUSD, H1: AUDUSD was traded higher while currently testing the resistance level at 0.7445. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7445, 0.7480
Support level: 0.7400, 0.7365
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7015. MACD which illustrate bearish bias momentum signal with the formation of death cross suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7090, 0.7175
Support level: 0.7015, 0.6960
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2815. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses after it successfully breakout below the support level at 1.2815.
Resistance level: 1.2855, 1.2915
Support level: 1.2815, 1.2770
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.8895. MACD which display diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 0.8870.
Resistance level: 0.8895, 0.8945
Support level: 0.8870, 0.8830
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 45.50. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its gains toward the resistance level at 46.65.
Resistance level: 46.65, 48.20
Support level: 45.50, 44.65
GOLD_, H4: Gold price was traded higher following prior rebound from the support level at 1830.65. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its gains toward the resistance level at 1844.50.
Resistance level: 1844.50, 1859.95
Support level: 1830.65, 1815.50