19 March 2021 Morning Session Analysis
Pound dipped amid BoE warned the outlook remained unclear.
Pound sterling which act as one of the major currencies that being traded in the FX market was receiving huge sell-off pressure following Bank of England (BoE) released its dovish tilted stance during yesterday meeting. In the BoE’s meeting, the Monetary Policy Committee (MPC) decided to maintain its interest rate at 0.10%, leaving the bond purchase program unchanged at £875 billion. Besides, BoE members have also stated that their unfolding monetary policy is appropriate in current economic condition. On the projection front, BoE revealed that the Covid-19 related restriction and spread of virus would continue to weigh on the economy in short term, but the government effort on vaccination program are expected to boost the economy recovery while forecasting the UK GDP back to pre-pandemic level. Nevertheless, BoE has also warned that virus spreading are still the main concern for them despite recent sign of slowing down. Hence, BoE will continue to monitor the progress of vaccination as well as the spread of virus closely, additional tools would be used to support the economy if the outlook of inflation weaken. As of writing , the pair of GBP/USD dropped by 0.03% to 1.3900.
In the commodities market, the crude oil price down by 0.12% to $59.40 per barrel as of writing amid heightening of market worries over the equilibrium of oil market following recent surge in US crude oil inventories level. Moreover, the resurgence of virus in Europe further weigh on this black commodity market, tampering the demand outlook of oil product. Besides, gold price plunged by 0.13% to $1734.40 per troy ounce amid rising of US 10-year treasury yield pushed up the value of dollar and diminished the appeal of safe-haven asset.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
10:30 JPY BoJ Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 10:30 | JPY – BoJ Interest Rate Decision | -0.10% | -0.10% | – |
| 20:30 | CAD – Core Retail Sales (MoM)(Jan) | -4.1% | -2.6% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level at 91.55. MACD which illustrated bearish bias momentum suggest the index to extend its gains toward the resistance level at 92.10.
Resistance level: 92.10, 92.60
Support level: 91.55, 91.25
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3990. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.3845.
Resistance level: 1.3990, 1.4085
Support level: 1.3845, 1.3755
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.1950. MACD which illustrated bearish momentum signal suggest the pair to extend its losses toward the support level at 1.1890.
Resistance level: 1.1950, 1.2025
Support level: 1.1890, 1.1830
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 109.15. MACD which illustrated bearish bias momentum signal suggest the pair to extend its losses toward the lower level.
Resistance level: 109.15, 109.65
Support level: 108.35, 107.85
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.7780. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.7730.
Resistance level: 0.7780, 0.7835
Support level: 0.7730, 0.7660
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.7175. MACD which illustrated bearish bias momentum suggests the pair to extend its losses toward the support level at 0.7105.
Resistance level: 0.7175, 0.7225
Support level: 0.7105, 0.7075
USDCAD, H4: USDCAD was traded lower following prior retracement from the higher level. However, MACD which illustrate bullish bias momentum signal suggest the pair to undergo technical correction toward higher level.
Resistance level: 1.2555, 1.2610
Support level: 1.2485, 1.2400
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level at 0.9280. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.9280.
Resistance level: 0.9280, 0.9370
Support level: 0.9225, 0.9180
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 58.65. However, MACD which illustrated bearish bias momentum suggest the commodity to undergo technical correction in short term.
Resistance level: 60.65, 62.60
Support level: 58.65, 57.40
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1738.10. However, MACD which illustrated bearish bias momentum signal suggest the commodity to undergo technical correction toward a lower level.
Resistance level: 1738.10, 1765.20
Support level: 1718.15, 1694.30