13 November 2018 Morning Session Analysis
Dollar triumph as Brexit tows sterling down.
US dollar peaks at 17-months high against other major currencies on Monday following a large selloff on the pound sterling amid gloomy Brexit headlines. On yesterday, UK Prime Minister Theresa May’s spokesperson denied a report claiming that the main elements of Brexit deal from the EU could be presented to the UK as soon as Tuesday. Such headlines have dialed down market participants sentiment towards UK as they may evoke “hard” Brexit with EU. With under five months until Brexit, talks between both nations have stalled over a disagreement on the Ireland border issues and backstop plan. At the same time, PM May’s attempt to unblock negotiations by considering a customs union and extending the Brexit date till end of December 2021 has angered both Eurosceptics and EU supporters within her Conservative Party. For the time being, negotiations are expected to continue within this week but officials are warned that unless there is progress by end of Wednesday, there is unlikely to have a summit this month to strike a Brexit deal. As of writing, dollar index rose 0.63% to 97.46 while pairing of GBP/USD ticked down 0.15% to 1.2853.
In the commodities market, crude oil price plunged 1.27% to $58.95 per barrel after US President Donald Trump tweeted that he hopes OPEC would not cut their production number next year while calling for a lower oil prices in the future. Otherwise, gold price depreciates by 0.28% to $1,201.96 a troy ounce following stronger US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:20 CrudeOIL OPEC Monthly Report
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Average Earnings Index +Bonus (Sep) | 2.7% | 3.0% | – |
| 17:30 | GBP – Claimant Count Change (Oct) | 18.5K | 4.3K | – |
| 18:00 | EUR – German ZEW Economic Sentiment (Nov) | -24.7 | -24.2 | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was opened lower following prior retrace from the higher levels. MACD which begins to form a death cross signal suggests the index to be traded lower in short-term as technical correction.
Resistance level: 97.40, 97.80
Support level: 97.00, 96.60
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the lower levels. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2895, 1.2955
Support level: 1.2805, 1.2690
EURUSD, H1: EURUSD was traded higher following prior rebound from the lower levels. MACD which begins to form a golden cross formation suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1240, 1.1280
Support level: 1.1185, 1.1140
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 114.20. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 113.30.
Resistance level: 113.85, 114.20
Support level: 113.30, 112.95
AUDUSD, H4: AUDUSD was traded lower following prior closure below the support level at 0.7220. MACD which illustrate bearish signal and momentum suggests the pair to extend its losses after breaking the support level at 0.7170.
Resistance level: 0.7205, 0.7220
Support level: 0.7170, 0.7135
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the 20-MA line (red). MACD which illustrate bearish signal suggests the pair to extend its losses after closing below the target of 0.6700.
Resistance level: 0.6735, 0.6770
Support level: 0.6700, 0.6660
USDCAD, H4: USDCAD was traded higher following prior breakout from the top level of ascending channel. MACD which continues to illustrate bullish signal suggests the pair to extend its gains after closing above 1.3255.
Resistance level: 1.3255, 1.3320
Support level: 1.3210, 1.3155
USDCHF, H1: USDCHF was traded lower while currently testing at the upward trendline. MACD which begins to form a negative divergence signal suggests the pair to extend its losses after breaking the upward trendline.
Resistance level: 1.0140, 1.0190
Support level: 1.0095, 1.0055
CrudeOIL, H1: Crude oil remains traded within a descending channel following prior rebound from the lower levels. MACD which illustrate diminishing downward momentum suggests the commodity price to be traded higher in short-term as technical correction.
Resistance level: 59.45, 62.00
Support level: 58.65, 57.00
GOLD_, H1: Gold price was traded higher following prior rebound from the lower levels. MACD which illustrate positive divergence signal suggests its prices to be traded higher in short-term, towards 1206.00.
Resistance level: 1206.00, 1215.95
Support level: 1198.00, 1190.00