13 August 2020 Morning Session Analysis
Pound steady following recent data release.
During early Asian session, the pound sterling which traded against the greenback and other currency pairs remain defensive and holding its gains after the release on UK data recently. According to National Statistics, UK GDP came in at -20.4%, slightly better than market expectation of -20.5%. However, it was still the largest contraction reported by any major economy to data despite with a better-than-expected reading. The data also showed that U.K economy has entered a recession which is the first since the financial crisis. Still, the downside potential was limited as the sharp slowdown in economy was expected during the height of the lockdown. Meanwhile, Manufacturing Production improved to -14.6%, surpassed market expectation of -15% which provide further catalyst for the pair to hold its ground steady. At the time of writing, GBP/USD edge higher 0.06% to 1.3038.
In the commodities market, crude oil price soars 0.21% to $42.60 per barrel as of writing following a larger-than-expected decrease in weekly crude supplies. According to the data from Energy Information Association (EIA), inventories of U.S. crude fell by 4.5 million barrels for the week ended Aug. 7, beating expectations for a draw of 2.9 million barrels. On the other hand, gold price slips 0.11% to $1919.35 a troy ounce amid investors piled in stock market and sold out the precious metals.
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 |
| 20.30 | USD – Initial Jobless Claims | 1186K | 1120K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index remain traded in a sideway channel. However, MACD which illustrate bearish momentum signal suggest the dollar to be traded lower in short term towards the support level 92.45.
Resistance level: 94.00, 95.70
Support level: 92.45, 90.70
GBPUSD, H4: GBPUSD remain traded in a sideway channel while currently testing near the support level 1.3005. However, MACD which illustrate diminishing bearish bias signal suggest the pair to be traded higher towards the resistance level 1.3200.
Resistance level: 1.3200, 1.3320
Support level: 1.3005, 1.2810
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1705. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 1.1895.
Resistance level: 1.1895, 1.1985
Support level: 1.1705, 1.1575
USDJPY, H4: USDJPY was traded flat while currently testing the support level 106.75. However, MACD which illustrate bearish bias signal suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 107.40, 108.05
Support level: 106.75, 106.20
AUDUSD, H4: AUDUSD was traded higher following prior rebound from its low level. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its gains towards the resistance level 0.7190.
Resistance level: 0.7190, 0.7290
Support level: 0.7075, 0.6970
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance level 0.6590. MACD which illustrate diminishing bearish momentum signal with the starting formation of golden cross suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 0.6590, 0.6685
Support level: 0.6510, 0.6395
USDCAD, H4: USDCAD was traded lower while currently testing near the support level 1.3195. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.3330, 1.3485
Support level: 1.3195, 1.3095
USDCHF, H4: USDCHF was traded lower following prior retracement from its high level. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its retracement towards the support level 0.9065.
Resistance level: 0.9230, 0.9365
Support level: 0.9065, 0.8985
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level 42.60. MACD which illustrate bullish momentum signal suggest the commodity to extend its gains after it breaks above the resistance level 42.60.
Resistance level: 42.60, 43.55
Support level: 41.05, 39.60
GOLD_, H4: Gold price was traded lower while currently testing near the support level 1908.55. However, MACD which illustrate diminishing bearish momentum signal suggest the commodity to experience a technical correction towards the resistance level 1970.60.
Resistance level: 1970.60, 2016.10
Support level: 1908.55, 1857.95