18 May 2020 Afternoon Session Analysis
Pound rose following BoE negative rate rejection.
The pound sterling which traded against the greenback and other currency pairs have gained some support during late Asian session following confirmation from BoE Governor Andrew Bailey. According to reports, Bank of England (BoE) Governor Andrew Bailey have stated that the central bank would not take its interest rates below zero. Besides that, BOE’s Chief Economist Andrew Haldane have also suggested that the central bank is currently examining unconventional monetary policy measures to limit the impact caused by coronavirus. Bank of England (BoE) Governor Andrew Bailey also hinting that the BoE might ramping up its stimulus programme. Still, due to the rising uncertainty of Brexit talk, investors remain wary while continue to focus on the ongoing development between the UK and EU. At the time of writing, GBP/USD rose 0.06% to 1.2109.
In the commodities market, crude oil price soars 3.74% to $30.66 per barrel as of writing following signs of rebound in gasoline demand help the commodity to gain momentum. According to fuel-price tracker GasBuddy, demand in the last week of April rebounded by 22% from the lowest overall week of gasoline demand on April 5 to April 11 after some states have re-open their economy. On the other hand, gold price also climbs 1.08% to $1761.92 a troy ounce following rising tension between U.S and China.
Today’s Holiday Market Close
Time Market Event
All Day CAD Victoria Day
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded flat near the MA line. However, MACD which illustrate bearish bias signal with the formation of death cross suggest the dollar to be traded lower in short term towards the support level 99.50.
Resistance level: 100.80, 101.70
Support level: 99.50, 98.65
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.1995. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a technical correction towards the resistance level 1.2225.
Resistance level: 1.2225, 1.2425
Support level: 1.1995, 1.1760
EURUSD, H4: EURUSD remain traded in a sideway channel following recent rebound from the support level 1.0785. However, MACD which illustrate bullish momentum signal with the formation of death cross suggest the pair to extend its rebound in short term towards the resistance level 1.0885.
Resistance level: 1.0885, 1.1000
Support level: 1.0785, 1.0680
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level 107.35. MACD which illustrate bearish bias signal suggest the pair to extend its retracement in short term towards the support level 106.75.
Resistance level: 107.35, 107.90
Support level: 106.75, 106.10
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level 0.6390. MACD which illustrate diminishing bearish momentum with the starting formation of golden cross suggest the pair to extend its rebound in short term towards the resistance level 0.6470.
Resistance level: 0.6470, 0.6550
Support level: 0.6390, 0.6290
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level 0.5910. MACD which display diminishing bearish momentum suggest the pair to extend its rebound towards the resistance level 0.6015.
Resistance level: 0.6015, 0.6135
Support level: 0.5910, 0.5830
USDCAD, H4: USDCAD was traded lower following prior retracement from its high level. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to extend its losses in short term towards the support level 1.3990.
Resistance level: 1.4135, 1.4265
Support level: 1.3990, 1.3860
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level 0.9740. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses towards the support level 0.9475.
Resistance level: 0.9740, 0.9800.
Support level: 0.9675, 0.9600
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level 28.15. MACD which illustrate ongoing bullish momentum signal suggest the commodity to extend its gains towards the resistance level 35.05.
Resistance level: 35.05, 39.25
Support level: 28.15, 23.10
GOLD_, H4: Gold price was traded higher while currently testing the resistance level 1761.25. MACD which illustrate persistent bullish momentum signal suggest the commodity to extend its gains after it breaks above the resistance level.
Resistance level: 1761.25, 1795.80
Support level: 1732.95, 1684.80