11 May 2020 Afternoon Session Analysis
Pound surged amid easing lockdown restriction.
The Pound Sterling which traded against the dollar and other currency pair have surged during late Asian session following the UK Prime Minister Boris Johnson announced the easing of lockdown restrictions for British nationals, which dialled up the market optimism toward the economic recovery from the UK. According to Reuters, the first movement will be for those who cannot work from home and so can join from Monday while the rest may start their work on Wednesday. Despite that, the UK government had faced major criticism over its handling of the coronavirus pandemic amid the death tolls of the coronavirus from the UK region had topped up to 39,000 people, the second highest in the world, behind the United States. Besides, the Pound Sterling received further bullish momentum amid positive prospect for the US-Sino trade war, which stoked a shift in sentiment toward riskier asset such as Pound Sterling. According to CNBC, China’s Commerce Ministry said that United States and China had agreed to improve the atmosphere for implementation of the Phase 1 deal. Nonetheless, at this time, investors may now scrutinize the week-long Brexit negotiations between the UK and European Union (EU) which will be starting today as well as the coronavirus development in order to received further trading signal. As of writing, GBP/USD appreciated by 0.18% to 1.2428.
In the commodities market, the crude oil price rose 0.31% to $25.50 per barrel as of writing. The oil market surged following the hope upon the escalating production cuts around the world would able to reduce the supply glut of the black commodity. On the other hand, the gold price depreciated on last Friday following the better-than-expected jobs data from the United States were released, which diminish the demand for the safe-haven commodity. However, as of writing, the gold price surged 0.38% to $1709.81 per troy ounces due to technical correction.
Today’s Holiday Market Close
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 99.65. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 100.20, 100.65
Support level: 99.65, 98.90
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.2425. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2425, 1.2470
Support level: 1.2380, 1.2315
EURUSD, Daily: EURUSD was traded higher following prior rebound from the support level at 1.0790. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.0975, 1.1080
Support level: 1.0790, 1.0655
USDJPY, H4: USDJPY was traded higher while currently near the resistance level at 107.10. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 107.10, 107.95
Support level: 106.15, 105.35
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.6560. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6560, 0.6680
Support level: 0.6405, 0.6235
NZDUSD, H1: NZDUSD was traded higher while currently testing the resistance level at 0.6145. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6145, 0.6175
Support level: 0.6120, 0.6075
USDCAD, H4: USDCAD was traded lower while currently near the support level at 1.3875. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.4015, 1.4155
Support level: 1.3875, 1.3765
USDCHF, Daily: USDCHF was traded lower following prior retracement from the resistance level at 0.9760. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9760, 0.9880
Support level: 0.9585, 0.9495
CrudeOIL, H1: Crude oil price was traded higher while currently testing the resistance level at 26.15. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 26.15, 29.95
Support level: 22.80, 19.30
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1709.55. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1696.60.
Resistance level: 1709.55, 1733.25
Support level: 1696.60, 1673.75