17 December 2019 Morning Session Analysis
Sterling slumped amid to bleak data from the UK region
The Pound Sterling surged on the early Monday, boosted by last week’s general election victory for the pro-Brexit Conservative party, however, such pair received some bearish momentum following the bleak data from the UK region was released. The win for the Conservative Party enhanced the strength for the pair as the investors perceived that his party had the highest ability to end the Brexit uncertainty, which hurting the economic growth in the UK. However, the gains experienced by the Pound Sterling was limited following the data from the UK regions was published. According to Markit Economics, U.K. Composite Purchasing Managers’ Index (PMI) notched down from 49.3 to 48.5, missing the economist forecast at 49.6. Meanwhile, U.K. Manufacturing Purchasing Managers Index (PMI) came in at 47.4, lower than the market forecast at 49.3 and U.K. Services Purchasing Managers Index (PMI) came in at 49.0, which also fared worse than expectation. However, according to Reuters, market participants still relatively optimistic over the outlook for the pound sterling following the resounding electoral win for the Conservative Party. On the other hand, dollar index was held steady on yesterday, as market participants are still waiting for further details with regards of the U.S.-China trade agreement. As of writing, GBP/USD slumped 0.54% to 1.3255 while dollar index depreciated by 0.03% to 96.55.
In the commodities market, crude price rose yesterday as market participants expected the resolution of trade war may improve the global economic growth, which might prop up future demand for the commodity. On the other hand, gold price received some bearish momentum amid to positive prospect for the US-China trade deal, which spurring some sell-off for the safe-haven metal. As of writing, crude oil price depreciated by 0.13% to $60.03 per barrel while gold price slumped 0.044%% to $1475.15 per troy ounces.
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 – Average Earnings Index +Bonus (Oct) | 3.6% | 3.4% | – |
| 17.30 | GBP – Claimant Count Change (Nov) | 33.0K | 21.3K | – |
| 21.30 | USD – Building Permits (Nov) | 1.461M | 1.400M | – |
| 23.00 | USD – JOLTs Job Openings (Oct) | 7.024M | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior breakout below the previous support level at 96.90. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 96.30.
Resistance level: 96.90, 97.35
Support level: 96.30, 95.90
GBPUSD, Daily: GBPUSD was traded lower while currently testing the support level at 1.3235. MACD which illustrated diminishing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3490, 1.3685
Support level: 1.3235, 1.2985
EURUSD, Daily: EURUSD was traded lower following prior retracement from the resistance level at 1.1160. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.1080.
Resistance level: 1.1160, 1.1220
Support level: 1.1080, 1.0995
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 109.65. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 109.35.
Resistance level: 109.65, 109.95
Support level: 109.35, 109.00
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.6860. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6925, 0.6985
Support level: 0.6860, 0.6800
NZDUSD, Daily: NZDUSD was traded higher while currently testing the resistance level at 0.6600. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6600, 0.6660
Support level: 0.6530, 0.6475
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.3130. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.3185.
Resistance level: 1.3185, 1.3225
Support level: 1.3130, 1.3080
USDCHF, H4: USDCHF was traded within a range while currently near the support level at 0.9810. MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9860, 0.9895
Support level: 0.9810, 0.9765
CrudeOIL, Daily: Crude oil price was traded higher following prior breakout above the previous resistance level at 58.85. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 60.70.
Resistance level: 60.70, 62.00
Support level: 58.35, 57.35
GOLD_, H1: Gold price was higher following prior rebound from the support level at 1473.80. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 1478.10.
Resistance level: 1478.10, 1482.70
Support level: 1473.80, 1469.55