12 February 2019 Morning Session Analysis
Sterling tumbles as economy crumbles.
US dollar extended its gains to two-months high against other major peers amid broad selloff on the pound sterling. As of writing, the dollar index was up 0.42% to 96.80 while pairing of GBP/USD was down by 0.44% to 1.2858. According to Office for National Statistics, UK’s Gross Domestic Product for the fourth quarter grew at a slower pace with only 0.2%, missing economist forecast for a reading of up to 0.3%. The data has propelled market anxiousness towards UK’s economy as they are bound to embrace recessive risks after Brexit. For the time being, investors will keep an eye upon UK Prime Minister Theresa May’s statement to members of the parliament which has been rescheduled to Tuesday (initially Wednesday) for further signal with regards to Brexit negotiations. On the other hand, US dollar remained well supported as US-China trade talks shows little signs of progress. A failure to attain consensus between both countries would be deemed as beneficial for the US economy.
In the commodities market, crude oil price slumped 0.10% to $52.31 per barrel. Oil prices remained under bearish pressure as traders embraced for an increase in supplies at Cushing, Oklahoma, the delivery point for crude futures as inventories levels hover at its yearly highs. Otherwise, gold price depreciates by 0.03% to $1,308.03 a troy ounce following stronger US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:00 CrudeOIL OPEC Monthly Report
21:00 GBP BoE Gov Carney Speaks
01:45 (13th) USD Fed Chair Powell Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 23:00 | USD – JOLTs Job Openings (Dec) | 6.888M | 6.900M | – |
| 05:30
(13th) |
CrudeOIL – API Weekly Crude Oil Stock | 2.514M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior close above 96.65. MACD which illustrate bullish signal suggests the index to extend its gains, towards the direction of 97.00.
Resistance level: 97.00, 97.65
Support level: 96.65, 96.30
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level of 1.2855. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below the support of 1.2855.
Resistance level: 1.2930, 1.2990
Support level: 1.2855, 1.2800
EURUSD, H4: EURUSD was traded lower while currently testing near the support of 1.1270. MACD which has formed a bearish signal suggests the pair to advance further down, after closing below the support level.
Resistance level: 1.1300, 1.1355
Support level: 1.1270, 1.1215
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance of 110.50. MACD which illustrate bullish signal suggests the pair to extend its gains after closing above the target of 110.50.
Resistance level: 110.50, 111.00
Support level: 110.00, 109.55
AUDUSD, H4: AUDUSD was traded lower following prior closure below the support of 0.7070. MACD which illustrate diminishing upward momentum suggests the pair to extend its losses, towards the direction of 0.7015.
Resistance level: 0.7070, 0.7170
Support level: 0.7015, 0.6915
NZDUSD, H4: NZDUSD was traded lower following prior retrace from the 20-MA line (red). MACD which illustrate diminishing upward momentum suggests the pair to advance further down, towards the direction of 0.6710.
Resistance level: 0.6780, 0.6820
Support level: 0.6710, 0.6645
USDCAD, H1: USDCAD was traded higher following prior closure above the resistance at 1.3280. MACD which illustrate bullish signal suggests the pair to extend its gains, towards the direction of 1.3325.
Resistance level: 1.3325, 1.3360
Support level: 1.3280, 1.3220
USDCHF, H4: USDCHF was traded higher following prior closure above the resistance near 1.0040. MACD which illustrate bullish signal suggests the pair to advance further up, towards the direction at 1.0080.
Resistance level: 1.0080, 1.0130
Support level: 1.0040, 1.0000
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support of 51.15. MACD which illustrate bullish signal suggests its prices to be traded higher in short-term as technical correction.
Resistance level: 52.80, 53.70
Support level: 51.85, 51.15
GOLD_, H4: Gold price was traded lower following prior retrace from the 20-MA line (red). MACD which illustrate bearish signal suggests its prices to extend its losses, towards the direction of 1303.00.
Resistance level: 1315.00, 1329.00
Support level: 1303.00, 1292.85