17 January 2020 Afternoon Session Analysis
UK pound sterling gains ahead of data.
British pound sterling continue to outperform against all its peers despite recovering greenback and soft data from the U.K. At the moment, market continue to speculate that there is a strong probability of Bank of England (BoE) will reduce its benchmark rate by 25 basis points on 30 January following soft data and activity. Still, a Reuter’s poll of analysts showed that the British central bank is likely to steer rates on a steady course on January. Market will now focused ahead of inflation data which is the U.K retail sales to attain further confirmation and signal for the pair. As of writing, GBP/USD climbs 0.03% to 1.3075. On the other hand, AUD/USD rose 0.04% to 0.6896 at the time of writing following the release of data from China. According to National Bureau of Statistics of China, retail sales in China have improved to 8%, a slight increase from market expectation of 7.8%. Besides that, industrial production also came in at 6.9%, surpassed market expectation of 5.9% while GDP remains unchanged at 1.5%. As China is the largest trading partner with Australia, the Aussie dollar also react positively towards the data.
In the commodities market, crude oil price rose 0.07% to $58.52 as of writing following a draw in stockpile. According to Energy Information Administration (EIA), crude inventories fell by 2.5 million barrels, far more than the expected drop of 750,000 barrels. At the same time, the phase one trade deal also help boosting the optimism and provide support for the commodity price. Next, gold price remain in tight range and edge higher 0.04% to $1553.56 at the time of writing as market awaits for further signal to determine its direction.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Retail Sales (MoM) (Dec) | -0.6% | 0.5% | – |
| 18:00 | EUR – CPI (YoY) (Dec) | 1.3% | 1.3% | – |
| 21:30 | USD – Building Permits (Dec) | 1.474M | 1.468M | – |
| 23:00 | USD – JOLTs Job Openings (Nov) | 7.267M | 7.233M | – |
| 02:00
(18th) |
CrudeOIL – US Baker Hughes Oil Rig Count | 659 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the higher level. However, MACD which illustrate diminished downward momentum suggests the index to be traded higher in short-term.
Resistance level: 97.25, 97.70
Support level: 96.85, 96.25
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3035. MACD which formed bullish signal suggests the pair to extend its gains, towards the direction of 1.3100.
Resistance level: 1.3100, 1.3165
Support level: 1.3035, 1.2965
EURUSD, H4: EURUSD was traded higher following prior rebound from the lower level. However, MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short term.
Resistance level: 1.1160, 1.1180
Support level: 1.1110, 1.1075
USDJPY, H4: USDJPY extended gains following prior breakout above the previous resistance level at 110.15. MACD which begins to form bullish signal suggests the pair to extend its gains, towards the direction of 110.55.
Resistance level: 110.55, 110.90
Support level: 110.10, 109.65
AUDUSD, H1: AUDUSD was traded higher while currently testing the 20 (red) and 50 (blue) moving average line. MACD which formed a bullish signal suggests the pair to extend its gains after it successfully breakout above the both moving average line.
Resistance level: 0.6925, 0.6965
Support level: 0.6880, 0.6850
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the 50 moving average line (Blue). MACD which illustrate bullish bias momentum suggests the pair to extend its gains toward the resistance level at 0.6650.
Resistance level: 0.6650, 0.6670
Support level: 0.6620, 0.6600
USDCAD, Daily: USDCAD was traded lower following prior retrace from 1.3085. MACD which illustrate diminished upward momentum suggests the pair to extend its losses toward the support level at 1.3020.
Resistance level: 1.3085, 1.3145
Support level: 1.3020, 1.2960
USDCHF, H4: USDCHF was traded higher following prior rebound near the support level at 0.9610. MACD which illustrate bullish momentum suggest the pair to extend its gains toward the resistance level at 0.9660.
Resistance level: 0.9660, 0.9690
Support level: 0.9610, 0.9550
CrudeOIL, H4: Crude oil was traded higher while currently testing the resistance level at 58.60. MACD which illustrate bullish signal suggests this commodity to extend its gains after it successfully breakout above the resistance level at 58.60.
Resistance level: 58.60, 59.70
Support level: 57.55, 56.80
GOLD_, H1: Gold price was traded higher following prior rebound near the support level at 1551.10. MACD which shows diminishing downward momentum suggests its price to be traded higher in short term toward the resistance level at 1561.85.
Resistance level: 1561.85, 1572.10
Support level: 1551.10, 1538.45