13 October 2020 Morning Session Analysis
Pound surged over the hopes for “soft-Brexit.”
Pound Sterling surged on yesterday amid positive hopes upon the “soft-Brexit” trade negotiation, which spurring demand for the Pound Sterling. Market participants speculated that both United Kingdom and European Union party would able to reach a consensus on a trade deal during the deadline which set by the UK Prime Minister Boris Johnson on 15th October. According to BBC, it reported that both sides have achieved some progress in the last couple of weeks, though there are still major disagreements on few major issues. Nonetheless, investors would continue to scrutinize the latest updates with regards of the Brexit deal in order to gauge the likelihood movement for the currencies. However, the gains experienced by the Pound Sterling was limited following the UK Prime Minister Boris Johnson announced new coronavirus restrictions, which dragged down the appeal for the Pound Sterling. According to Reuters, Boris Johnson set out a three-tier system of local lockdown measures in England, which including a ban on households mixing indoors in some area in order to curb the spiking number of coronavirus in United Kingdom. According to the latest data, UK had recorded 13,972 new cases of coronavirus on yesterday.
In the commodities market, the crude oil price slumped 0.10% to $39.80 per barrel as of writing as the Energy companies forged ahead restoring oil production in the United States on Monday following the Hurricane Delta weaken. On the other hand, the gold market was traded flat at $1924.15 per troy ounces as of writing amid market participants are still waiting for the further development with regards of the latest U.S. stimulus plans in order to receive further trading signal.
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 |
| 14:00 | GBP – Average Earnings Index +Bonus (Aug) | -1.0% | -0.6% | – |
| 14:00 | GBP – Claimant Count Change (Sep) | 73.7K | 80.0K | – |
| 17:00 | EUR – German ZEW Economic Sentiment (Oct) | 77.4 | 74.0 | – |
| 20:30 | USD – Core CPI (MoM) (Sep) | 0.4% | 0.2% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 93.45. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 93.45, 93.90
Support level: 92.75, 92.15
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3070. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3070, 1.3145
Support level: 1.2985, 1.2890
EURUSD, H4: EURUSD was traded higher while currently near the resistance level at 1.1830. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1830, 1.18700
Support level: 1.1765, 1.1725
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 105.70. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 105.70, 106.15
Support level: 105.10, 104.70
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7200. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7245, 0.7295
Support level: 0.7200, 0.7145
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6675. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.6610.
Resistance level: 0.6675, 0.6725
Support level: 0.6610, 0.6570
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.3135. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3135, 1.3200
Support level: 1.3055, 1.3000
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9080. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9175, 0.9295
Support level: 0.9080, 0.9025
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 39.25. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 40.55.
Resistance level: 40.55, 41.45
Support level: 39.25, 38.05
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level at 1928.90. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1928.90, 1941.80
Support level: 1915.65, 1897.95