16 January 2020 Afternoon Session Analysis
Pound slid amid downbeat economic data.
Pound sterling slumped amid pessimistic data from UK’s region further proved that its economic performance is still being haunted by hard Brexit’s uncertainties. According to Office for National Statistics, UK Consumer Price Index (CPI) data came in at 1.3%, missing the economist’ forecast of 1.5%, hinting inflation’s pressure has weakened and gradually away from Bank of England (BoE) target. Besides, feeble CPI data also further concreted UK Central bank policy setter’s dovish statement where an expanding monetary policy should be implemented in order to support their economy‘s growth. In a speech by Michael Saunders on Wednesday, he emphasized that sluggish economy which shown by recent lackluster economic data is likely will lead to longer period of subdued growth, enlarged the gap between target inflation and current inflation. The dovish statement from Saunders rippled through the market while urging the investor to sell off their pound’s holding. Michael Saunders has changed his point of view from keeping interest rate unchanged to a rate cut is necessary for current economic situation since the month of November year 2019. However, the pair of GBP/USD managed to recover most of its losses amid trade optimism between US and China which dragged down the appearance of US dollar. As of writing, the pair of GBP/USD notched up 0.12% to 1.3050.
In the commodities market, the crude oil price rose 0.17% to $58.15 per barrel amid a huge draw in crude oil inventories and signed off of phase 1 trade agreement continue to weigh on this black commodity market. Besides, gold price depreciated by 0.01% to $1556.10 a troy ounce as de-escalation of trade dispute pulled down the appealing of gold market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:30 EUR ECB Publishes Account of Monetary Policy Meeting
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:30 | USD – Core Retail Sales (MoM) (Dec) | 0.1% | 0.5% | – |
| 21:30 | USD – Philadelphia Fed Manufacturing Index (Jan) | 2.4 | 3.8 | – |
| 21:30 | USD – Retail Sales (MoM) (Dec) | 0.2% | 0.3% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level 96.95. MACD which illustrate ongoing bearish momentum suggest the dollar to extend its losses towards the support level 96.45.
Resistance level: 96.95, 97.40
Support level: 96.45, 96.00
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level 1.2965. MACD which illustrate bullish momentum signal suggest the pair to extend its rebound towards the resistance level 1.3095.
Resistance level: 1.3095, 1.3225
Support level: 1.2965, 1.2830
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1105. MACD which illustrate bullish momentum signal suggest the pair to extend its rebound towards the resistance level 1.1175.
Resistance level: 1.1175, 1.1250
Support level: 1.1105, 1.1045
USDJPY, H4: USDJPY was traded flat near the support level. However, MACD which illustrate bearish momentum signal with the recent formation of death cross suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 110.20, 110.65
Support level: 109.70, 109.25
AUDUSD, H4: AUDUSD remain traded in a sideway channel. Due to lack of momentum and clear direction from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 0.6930, 0.6990
Support level: 0.6890, 0.6845
NZDUSD, H4: NZDUSD was traded higher following prior rebound from its low level. MACD which illustrate bullish bias signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 0.6550.
Resistance level: 0.6550, 0.6740
Support level: 0.6555, 0.6500
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level 1.3065. MACD which illustrate bearish momentum signal suggest the pair to extend its losses towards the support level 1.3010.
Resistance level: 1.3065, 1.3125
Support level: 1.3010, 1.2945
USDCHF, H4: USDCHF was traded lower while currently testing the support level 0.9650. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a technical correction in short term towards the resistance level 0.9725.
Resistance level: 0.9725, 0.9780
Support level: 0.9650, 0.9590
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level 57.75. MACD which illustrate bullish momentum signal suggest the commodity to extend its gains towards the resistance level 59.55.
Resistance level: 59.55, 61.05
Support level: 57.75, 56.30
GOLD_, H4: Gold price remain traded in a sideway channel while currently testing near the resistance level 1561.90. MACD which illustrate bullish bias signal with the recent formation of golden cross suggest the commodity to be traded higher after it breaks above the resistance level.
Resistance level: 1561.90, 1613.35
Support level: 1542.15, 1523.25