18 December 2020 Morning Session Analysis
Pound sterling retreats as Boris Johnson warns hard Brexit.
During early Asian session, the pound sterling which traded against the greenback and other currency pairs have pared some of its gains and fell following U.K Prime Minister warning on no-deal Brexit. Following latest development, U.K Prime Minster Boris Johnson have once again poured cod water on the trade deal and stated that a deal is unlikely to be reach unless the EU change its stance substantially. EU chief Ursula von de Leyen also acknowledging that there are some big difference remains, especially in fisheries. At the same time, Cabinet minister Michael Gove stated that the chances of the UK and EU agreeing on a post-Brexit trade deal are “less than 50%”. With the increasing risk of no deal Brexit, the pound sterling once again feeling the pressure and fell. Market will continue to monitor the development as the talks between two sides continue till Sunday which is the deadline set by EU. At the time of writing, GBP/USD slips 0.06% to $1.3571.
In the commodities market, crude oil price rose 0.011% to $48.48 per barrel as of writing following the prospect of U.S fiscal stimulus. U.S. lawmakers have moved closer towards the agreement on a $900 billion virus-relief spending package on Wednesday which could help recover U.S economy and boost economic activity and fuel consumption. On top of that, vaccine rollout also continues to keep the market in mood. On the other hand, gold price also soars 0.13% to $1884.36 a troy ounce following optimism on U.S stimulus have propelled the safe-haven metal.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative JPY BoJ Monetary Policy Statement
Tentative JPY BoJ Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15.00 | GBP – Retail Sales (MoM) (Nov) | 1.2% | -4.2% | – |
| 17.00 | EUR – German Ifo Business Climate Index (Dec) | 90.7 | 90.0 | – |
| 21.30 | CAD – Core Retail Sales (MoM) (Oct) | 1.0% | 0.2% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level 89.95. MACD which illustrate ongoing bearish momentum signal suggest the dollar to extend its losses towards the next support level 89.35.
Resistance level: 89.95, 91.40
Support level: 89.35, 88.90
GBPUSD, H4: GBPUSD was traded higher following recent breakout above the previous resistance level 1.3505. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a short-term technical correction back towards the support level 1.3505.
Resistance level: 1.3735, 1.4025
Support level: 1.3505, 1.3300
EURUSD, H4: EURUSD was traded higher following recent breakout above the previous resistance level 1.2165. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a short-term technical correction towards the support level 1.2165.
Resistance level: 1.2355, 1.2515
Support level: 1.2165, 1.2010
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level 103.20. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 103.20, 103.65
Support level: 102.60, 102.05
AUDUSD, H4: AUDUSD was traded higher while currently testing near the resistance level 0.7655. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a technical correction towards the support level 0.7555.
Resistance level: 0.7655, 0.7755
Support level: 0.7555, 0.7450
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level 0.7175. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement towards the support level 0.7095.
Resistance level: 0.7175, 0.7280
Support level: 0.7095, 0.7010
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level 1.2680. MACD which illustrate bullish bias signal suggest the pair to extend its rebound towards the resistance level 1.2830.
Resistance level: 1.2830, 1.2955
Support level: 1.2680, 1.2540
USDCHF, H4: USDCHF remain traded in a sideway channel while currently testing the support level 0.8840. However, MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to be traded higher in short term towards the resistance level 0.8920.
Resistance level: 0.8920, 0.8985
Support level: 0.8840, 0.8775
CrudeOIL, H4: Crude oil price was traded higher while currently testing near the resistance level 48.60. However, MACD which illustrate diminishing bullish momentum signal suggest the commodity to be traded lower as a short-term technical correction towards the support level 46.40.
Resistance level: 48.60, 50.85
Support level: 46.40, 43.45
GOLD_, H4: Gold price was traded higher high following recent breakout above the previous resistance level 1581.25. However, MACD which illustrate diminishing bullish momentum signal suggest the commodity to experience a technical correction after it breaks back below the level.
Resistance level: 1920.00, 1955.00
Support level: 1881.25, 1850.45.