15 December 2020 Morning Session Analysis
Pound gave up gains following reports of difficulty on Brexit talks.
During early Asian session, the pound sterling which traded against the dollar and other currency pairs have retreat from its previous gains after reports about lack of progress on post-Brexit talks eased investor optimism towards a deal before the end of Brexit transition period. According to reports from Sky News, talks remain “difficult” for both side due to a lack of significant progress in recent days despite with the recent extension on deadline. Both U.K and EU continue to struggle on key issues such as fishing quotas and level playing field. A new deadline has not been set but the time is slowly near towards the final Dec 31 deadline which is the end of the transition period. Boris Johnson also stated that it will be “most likely” a no-deal Brexit scenario. As both sides are now heading towards a no-deal Brexit scenario, the optimism of reaching trading deal have faded, thus weighing negatively on the pound sterling. At the time of writing, GBP/USD slips 0.06% to 1.3326.
In the commodities market, crude oil price held steady and rose 0.11% to $47.07 per barrel as of writing following market continue to chase towards U.S vaccine. Despite with OPEC lowered its forecast for global oil demand growth, market sentiment remains high on vaccine where U.S is expected to undergo mass vaccination and setting a trend for other countries to follow. On top of that, the reports of a fuel transport ship being stuck at a Saudi port also helping to push the price higher. On the other hand, gold price fell 0.08% to $1828.94 a troy ounce at the time of writing following optimism over vaccine rollout and lack of progress in U.S stimulus.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15.00 | GBP – Average Earnings Index +Bonus (Oct) | 1.3% | 2.2% | – |
| 15.00 | GBP – Claimant Count Change | -29.8K | 50.0K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index remain traded in a sideway channel following recent rebound from the support level 90.55. However, MACD which illustrate diminishing bearish momentum signal suggest the dollar to be traded higher in short term towards the resistance level 91.40.
Resistance level: 91.40, 92.05
Support level: 90.55, 89.95
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level 1.3300. MACD which illustrate diminishing bullish bias momentum signal suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 1.3505, 1.3735
Support level: 1.3300, 1.3150
EURUSD, H4: EURUSD remain traded in sideway channel while currently testing near the resistance level 1.2165. However, MACD which illustrate bullish bias signal suggest the pair to be traded higher after it breaks above the resistance level.
Resistance level: 1.2165, 1.2355
Support level: 1.2010, 1.1895
USDJPY, H4: USDJPY remain traded in a sideway channel following recent rebound from the support level 103.65. However, MACD which illustrate diminishing bearish momentum signal with the formation of golden cross suggest the pair to extend its rebound in short term towards the resistance level 104.50.
Resistance level: 104.50, 105.15
Support level: 103.65, 103.20
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level 0.7555. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to extend its retracement towards the support level 0.7450.
Resistance level: 0.7555, 0.7655
Support level: 0.7450, 0.7340
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level 0.7095. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its retracement towards the support level 0.7010.
Resistance level: 0.7095, 0.7175
Support level: 0.7010, 0.6900
USDCAD, H4: USDCAD remain trade in a sideway channel. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower in short term towards the support level 1.2680.
Resistance level: 1.2830, 1.2955
Support level: 1.2680, 1.2540
USDCHF, H4: USDCHF remain traded in a sideway channel while currently testing the support level 0.8850. However, MACD which illustrate diminishing bullish bias signal suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 0.8920, 0.8985
Support level: 0.8850, 0.8775
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level 46.40. MACD which illustrate bullish bias signal suggest the commodity to extend its gains towards the resistance level 48.60.
Resistance level: 48.60, 50.85
Support level: 46.40, 43.45
GOLD_, H4: Gold price remain traded in a sideway channel while currently testing near the support level 1815.15. However, MACD which illustrate diminishing bearish momentum signal suggest the commodity to be traded higher in short term towards the resistance level 1850.45.
Resistance level: 1850.45, 1881.25
Support level: 1815.15, 1769.75