14 July 2020 Morning Session Analysis
Pound slumped over the risk-off sentiment.
Pound Sterling slumped on yesterday amid risk-off sentiment in the FX market following California moved to shut down all indoor activities, which spurring significant selloff for the risky currency such as Pound Sterling. According to Reuters, California Governor Cavin Newsom claimed that all the counties in the state must close indoor restaurants, shutting bars, gyms and hair salons following the number of the coronavirus infections spiked up in the states. In fact, he also reiterated that the move is critical to stemming a new surge in coronavirus cases that have strained hospitals in several of California’s rural counties. Besides that, the Pound Sterling received further bearish momentum amid fears over the Brexit development continue to weigh on the Pound Sterling. According to the report from Institute of Directors (IoD), it showed that only one in four companies being prepared for Britain’s fully departure from the European Union. Hence, failure of achieving the trade consensus between UK and Europe would significantly damage the economic growth for both countries. Nonetheless, investors would continue to eye on the latest development with regards of the coronavirus vaccine as well as the Brexit updates in order to gauge the likelihood movement for the currency. As of writing, GBP/USD depreciated by 0.05% to 1.2560.
In the commodities market, the crude oil price depreciated by 0.11% to $39.75 per barrel as of writing. The oil market edged lower following the unstoppable acceleration of the coronavirus infections, which weighing the market demand on this black-commodity. On the other hand, the gold market surged 0.02% to $1802.00 per troy ounces amid diminishing risk appetite, which insinuating demand for this safe-haven commodity.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:00 CrudeOIL OPEC Monthly Report
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Claimant Count Change (Jun) | 528.9K | 400.0K | – |
| 14:00 | GBP – GDP (MoM) | -20.4% | – | – |
| 14:00 | GBP – Manufacturing Production (MoM) (May) | -24.3% | 8.0% | – |
| 20:30 | USD – Core CPI (MoM) (Jun) | -0.1% | 0.1% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 96.35. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 97.55, 98.90
Support level: 96.35, 94.90
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.2670. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2515.
Resistance level: 1.2670, 1.2800
Support level: 1.2515, 1.2340
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1360. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.1325.
Resistance level: 1.1360, 1.1390
Support level: 1.1325, 1.1270
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 107.35. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 107.35, 107.90
Support level: 106.75, 106.35
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.6925. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7000, 0.7065
Support level: 0.6925, 0.6850
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6565. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6505.
Resistance level: 0.6565, 0.6635
Support level: 0.6505, 0.6465
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.3555. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3630.
Resistance level: 1.3630, 1.3685
Support level: 1.3555, 1.3510
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level at 0.9435. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9435, 0.9470
Support level: 0.9375, 0.9320
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 41.10. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 39.05.
Resistance level: 41.10, 43.00
Support level: 39.05, 37.15
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level at 1808.45. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1794.55.
Resistance level: 1808.45, 1817.85
Support level: 1794.55, 1783.75