16 October 2020 Morning Session Analysis
Pound sterling slips following failures of Brexit talk.
During early Asian session, the pound sterling which traded against the dollar and other currency pairs have plunged sharply as EU is reported not working “intensively” to reach a trade deal with U.K. Following the conclusion of the first day of the European summit, EU’s chief negotiator Micheal Barnier stated the level playing field commitments, fisheries and issues of governance remained stuck on progress on trade talks. Leaders from EU continue to request UK to make further concessions in order to reach a trade deal which draw criticism from UK Brexit negotiator David Frost. With both sides continue to reach an impasse, the lack of progress once again increased the concerns for hard Brexit scenario which continue to weigh heavily on the pound sterling. Market will now shift their focus on U.K Prime Minister Boris Johnson where he is expected to announce his decision soon whether the UK will walk away or continue talks. At the time of writing, GBP/USD fell 0.08% to 1.2901.
In the commodities market, crude oil price remains buoyant and rose 0.17% to $41.22 per barrel as of writing following upbeat EIA report. According to EIA, crude oil inventories fell by 3.8 million barrels, larger than market expectation of a 2.835 decline. On the other hand, gold price also jumped 0.15% to $1906.57 a troy ounce at the time of writing as uncertainty in Brexit and COVID-19 fears continue to push investors towards safer markets.
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 |
| 17.00 | EUR – CPI (YoY) (Sep) | -0.3% | -0.3% | – |
| 20.30 | USD – Core Retail Sales (MoM) (Sep) | 0.7% | 0.5% | – |
| 20.30 | USD – Retail Sales (MoM) (Sep) | 0.6% | 0.7% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing near the resistance level 93.85. MACD which illustrate ongoing bullish momentum signal suggest the dollar to extend its gains after it breaks above the resistance level.
Resistance level: 93.85, 94.25
Support level: 93.35, 92.95
GBPUSD, H4: GBPUSD was traded lower following recent retracement from the resistance level 1.2990. MACD which illustrate bearish momentum signal suggest the pair to extend its retracement towards the support level 1.2825.
Resistance level: 1.2990, 1.3145
Support level: 1.2870, 1.2685
EURUSD, H4: EURUSD was traded lower while currently testing the support level 1.1700. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher as a technical correction towards the resistance level 1.1770.
Resistance level: 1.1770, 1.1830
Support level: 1.1700, 1.1620
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level 105.15. MACD which illustrate bullish momentum signal with the recent formation of golden cross suggest the pair to extend its rebound towards the resistance level 105.70.
Resistance level: 105.70, 106.10
Support level: 105.15, 104.50
AUDUSD, H4: AUDUSD was traded lower following recent breakout below the previous support level 0.7105. MACD which illustrate bearish bias signal suggest the pair to extend its losses towards the support level 0.7010.
Resistance level: 0.7105, 0.7240
Support level: 0.7105, 0.6925
NZDUSD, H4: NZDUSD remain traded in a sideway channel following recent retracement from the resistance level 0.6675. However, MACD which illustrate bearish momentum signal suggest the pair to extend its retracement in short term towards the support level 0.6530.
Resistance level: 0.6675, 0.6790
Support level: 0.6530, 0.6390
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level 1.3245. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 1.3245, 1.3325
Support level: 1.3140, 1.3005
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level 0.9155. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 0.9155, 0.9195
Support level: 0.9120, 0.9080
CrudeOIL, H4: Crude oil price remain traded in a sideway channel while currently testing near the resistance level 41.55. However, MACD which illustrate ongoing bullish momentum signal with the formation of golden cross suggest the commodity to be traded higher after it breaks above the resistance level.
Resistance level: 41.55, 43.45
Support level: 39.25, 37.00
GOLD_, H4: Gold price remain traded in a sideway channel. However, MACD which illustrate bullish bias signal with the formation of golden cross suggest the commodity to be traded higher in short term towards the resistance level 1917.50.
Resistance level: 1917.50, 1954.60
Support level: 1881.25, 1850.45