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19 June 2020                       Afternoon Session Analysis

 

Pound slips further following Brexit fears.

The pound sterling which traded against the dollar and other currency pairs have fell during late Asian session as signs of U.K and EU relationship remains fragile. According to reports from Bloomberg, the EU stated that it would impose full customs controls and checks on U.K. goods in 2021 at the end of Dec 31 transition period. Besides that, U.K. also stated that in the first half of 2021, most firms moving goods into Britain would get six months to pay any tariffs due, even if a post-Brexit deal is not reached. Signs of weak relationship between U.K and EU have increased doubt over potential trade deal and easing market optimism. On top of that, dovish sentiment from the BoE also caused extra pressure for the pound sterling. BoE held rates steady at historic lows of 0.1% and ramped up its bond purchases by £100 billion. It also stated that it stands ready to take further action as necessary in order support the economy and boost inflation to its 2% target. At the time of writing, GBP/USD fell 0.04% to $1.2420.

 

In the commodities market, crude oil price gains 0.72% to 39.25 per barrel as of writing amid market faith in supply cuts. Following latest reports, Iraq and Kazakhstan promises to compensate for overproduction in May on their supply cut commitments. Besides that, positive comments from oil trading giants Vitol and Trafigura also help buoyed the sentiment as they forecasted a rapid demand rebound. On the other hand, gold price edge higher by 0.17% to $1725.97 at the time of writing following increase risk-off appeal.

 

Today’s Holiday Market Close

Time                       Market                  Event

N/A

 

Today’s Highlight Events

Time                       Market                  Event

N/A

 

Today’s Highlight Economic Data

Time Nation & Data Previous Forecast Actual
14:00 GBP – Retail Sales (MoM) (May) -18.1% 5.8%
20:30 CAD – Core Retail Sales (MoM) (May) -0.4% -12.8%
01:00

(20th)

CrudeOIL – US Baker Hughes Oil Rig Count 199

 

Technical Analysis

DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 96.90. MACD which illustrate bullish momentum signal suggest the pair to extend its gains toward the resistance level at 97.60.

 

Resistance level: 97.60, 98.35

Support level: 95.95, 95.00

 

GBPUSD, Daily: GBPUSD was traded lower following prior breakout below the previous support level at 1.2485. MACD which illustrate bearish bias momentum with the formation of death cross suggest the pair to extend its losses toward the support level at 1.2250.

 

Resistance level: 1.2485, 1.2585

Support level: 1.2250, 1.1965

 

EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.1240. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to undergo technical correction toward the resistance level at 1.1240.

 

Resistance level: 1.1240, 1.1400

Support level: 1.1115, 1.1025

 

USDJPY, Daily: USDJPY was traded lower following prior breakout below the previous support level at 107.15. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 106.20.

 

Resistance level: 107.15, 108.15

Support level: 106.20, 104.80

 

AUDUSD, Daily: AUDUSD was traded lower while currently testing the upward trend line. MACD which display bearish bias momentum signal suggest the pair to extend its losses after it successfully breakout below the upward trend line.

 

Resistance level: 0.6935, 0.7215

Support level: 0.6655, 0.6310

 

NZDUSD, Daily: NZDUSD was traded lower while currently testing the support level at 0.6405.  MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses after it successfully breakout below the support level at 0.6405.

 

Resistance level: 0.6565, 0.6735

Support level: 0.6405, 0.6200

 

USDCAD, Daily: USDCAD was traded higher following prior rebound from the lower level. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 1.3650.

 

Resistance level: 1.3650, 1.3830

Support level: 1.3360, 1.3075

 

USDCHF, Daily: USDCHF was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 0.9540.

 

Resistance level: 0.9540, 0.9625

Support level: 0.9455, 0.9335

 

CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 39.25. MACD which illustrate bullish bias momentum signal suggest the commodity to extend its gains after it successfully breakout above the resistance level at 39.25.

 

Resistance level: 39.25, 41.00

Support level: 37.55, 35.60

 

GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1721.60. MACD which illustrate bullish momentum signal suggest the pair to extend its gains toward the resistance level at 1732.75.

 

Resistance level: 1732.75, 1743.75

Support level: 1721.60, 1707.25