18 December 2019 Morning Session Analysis
Sterling plummeted following renewed Brexit fears.
The pound sterling which traded against the dollar have fell sharply after Boris Johnson announced his latest move on Brexit. On Tuesday, Prime Minister UK Boris Johnson have moved to change the law on Brexit, making it illegal for Britain to continue negotiations with the EU after 2020 despite warning from EU’s chief Brexit negotiator Michel Barnier which stated that making a “comprehensive” free-trade deal would be near impossible by the end of 2020. The move have renewed back fresh risk of a no deal Brexit where if the legislation is implement, UK and EU have only 11 months to struck a trade deal which most people think that is not enough time. And could steer the U.K back towards a hard Brexit. At the same time, disappointing jobs data also added further pressure for the pound as the Average Earning and Claimant Count Change data have shown a weaker reading of 3.2% and 28.8K against 3.4% and 21.2K respectively. At the time of writing, GBP/USD fell 0.25% to 1.3093.
In the commodities market, crude oil price pared its earlier gains and fell 0.09% to $60.46 per barrel at the time of writing following surprise inventory build. According to API, crude oil inventories rose by 4.7 million barrels in its stockpiles for the week ended Dec. 13. On the other hand, gold price remained steady and edge higher 0.02% to $1476.00 as of writing amid global uncertainty such as trade war and renewed fears of Brexit continue to support the price of gold.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16.30 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17.00 | EUR – German Ifo Business Climate Index (Dec) | 95.0 | 95.5 | – |
| 17.30 | GBP – CPI (YoY) | 1.5% | 1.4% | – |
| 18.00 | CPI (YoY) (Nov) | 0.7% | 1.0% | – |
| 21.30 | CAD – Core CPI (MoM)(Nov) | 0.4% | – | – |
| 23.30 | CrudeOIL – Crude Oil Inventories | 0.822M | -1.288M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 96.85. MACD which illustrated diminishing bearish momentum suggest the index to extend its gains after it successfully breakout above the resistance level at 96.85.
Resistance level: 96.85, 97.25
Support level: 96.25, 95.45
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.3170. MACD which illustrated bearish momentum suggest the pair to extend its losses toward the support level at 1.3035.
Resistance level: 1.3170, 1.3315
Support level: 1.3035, 1.2970
EURUSD, Daily: EURUSD was traded lower following prior retracement from the resistance level at 1.1170. MACD which illustrated diminishing bullish momentum suggest the pair to extend its retracement toward the support level at 1.1075.
Resistance level: 1.1170, 1.1240
Support level: 1.1075, 1.1005
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 109.65. MACD which illustrated bearish momentum suggest the pair to extend its losses toward support level at 109.25.
Resistance level: 109.70, 110.25
Support level: 109.25, 108.95
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.6850. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the next support level at 0.6815.
Resistance level: 0.6850, 0.6880
Support level: 0.6815, 0.6770
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.6570. MACD which illustrated bearish momentum suggest the pair to extend its losses toward the support level at 0.6535.
Resistance level: 0.6570, 0.6600
Support level: 0.6535, 0.6490
USDCAD, Daily: USDCAD was traded lower while currently testing near the support level at 1.3145. MACD which illustrated diminishing bearish momentum signal suggest the pair to undergo short term technical correction toward the resistance level at 1.3210.
Resistance level: 1.3210, 1.3265
Support level: 1.3145, 1.3085
USDCHF, H4: USDCHF was traded flat below the resistance level at 0.9810. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher toward the resistance level at 0.9810.
Resistance level: 0.9810, 0.9845
Support level: 0.9760, 0.9690
CrudeOIL, H1: Crude oil price was traded lower following prior retracement from the resistance level at 60.80. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses toward the support level at 59.70.
Resistance level: 60.80, 61.95
Support level: 59.70, 58.60
GOLD_, H4: Gold price was traded lower following prior retracement near the resistance level at 1477.40. MACD which illustrated bearish momentum and the formation of death cross suggest the commodity to be traded lower toward the support level at 1471.65.
Resistance level: 1477.40, 1484.70
Support level: 1471.65, 1464.05