11 January 2021 Morning Session Analysis
Pound struggles following rising expectation of rate cut.
During early Asian session, the pound sterling which traded against the dollar and other currency pair extend its previous losses and fell as investors concerns over increasing expectation of BoE rate cut into negative territory. Despite with EU-UK trade deal have brought some relief, fears remain brewing over the U.K’s economy following fresh lockdown measures to curb the unrelenting spread of the coronavirus. Following the lockdowns that could slowed the recovery, BoE could be the first central bank to cut rates this year and also potentially dive into negative rates for the first time. Thus, the expectation have caused investors to unwind their long position and drive the price lower. At the time of writing, GBP/USD slips 0.17% to $1.3533.
In the commodities market, crude oil price soars 0.21% to $52.50 per barrel as of writing following limited supply of blending components. According to sources from Houston and New Orleans, there has been a consistent lack of availability of 0.5%S blending components that have affect the production. On top of that, increasing demand for oil from China also help boosting the commodity price. On the other hand, gold price extend losses and fell 0.04% to $1849.46 a troy ounce at the time of writing following investors pulled money from the safe-haven commodity to rush into Treasuries as U.S. 10-year note yields surged to March highs.
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing near the resistance level 90.15. MACD which illustrate bullish momentum signal suggest the dollar to extend its gains after it breaks above the resistance level 90.15.
Resistance level: 90.15, 91.00
Support level: 89.00, 88.00
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level 1.3620. MACD which display ongoing bearish momentum signal suggest the pair to extend its losses towards the support level 1.3470.
Resistance level: 1.3620, 1.3725
Support level: 1.3470, 1.3295
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level 1.2260. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses towards the support level 1.2125.
Resistance level: 1.2260, 1.2390
Support level: 1.2120, 1.1995
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance level 104.25. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a technical correction towards the support level 103.20.
Resistance level: 104.25, 105.10
Support level: 103.20, 102.70
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.7735. MACD which display persistent bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.7825, 0.7905
Support level: 0.7735, 0.7630
NZDUSD, H4: NZDUSD was traded higher following recent retracement from its high level. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its retracement towards the support level 0.7155.
Resistance level: 0.7300, 0.7390
Support level: 0.7155, 0.7070
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level 1.2640. MACD which illustrate persistent bullish momentum signal suggest the pair to extend its gains towards the resistance level 1.2795.
Resistance level: 1.2795, 1.2955
Support level: 1.2640, 1.2535
USDCHF, H4: USDCHF was traded higher following prior rebound from its low level. MACD which illustrate bullish bias signal suggest the pair extend its rebound towards the resistance level 0.8990.
Resistance level: 0.8900, 0.8900
Support level: 0.8765, 0.8650
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level 51.30. However, MACD which illustrate diminishing bullish momentum signal suggest the commodity to be traded lower as a short-term technical correction towards the current support level 51.30.
Resistance level: 54.75, 57.40
Support level: 51.30, 48.35
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level 1857.75. MACD which illustrate ongoing bearish momentum signal suggest the commodity to extend its losses towards the support level 1816.25.
Resistance level: 1857.75, 1897.25
Support level: 1816.25, 1770.90