19 November 2020 Morning Session Analysis
Pound surged amid upbeat economic data.
The Pound Sterling surged on yesterday over the backdrop of the upbeat economic data. According to Office for National Statistics, U.K. Consumer Price Index (CPI) had notched up from the preliminary reading of 0.5% to 0.7%, confounding market forecast for a reading up to 0.6%, which spurring positive prospect toward the economic progression in the UK region while insinuating demand for the Pound Sterling. Besides, the risky currency Pound Sterling received further bullish momentum amid the positive hope upon the Covid-19 vaccine development. Such sentiment had spurred risk-on sentiment in the FX market while prompting investors to shift their portfolio toward riskier currency such as Pound Sterling. According to CNBC, the Pfizer and BioNTech said on Wednesday that the final data analysis found the Covid-19 vaccines was 95% effective in preventing the virus and appeared to fend off severe disease. Meanwhile, they also reiterated that the vaccine’s effectiveness was consistent across all ages, races and ethnicities. Nonetheless, the gains experienced by the Pound Sterling was limited as uncertainty with regards of the Brexit issues still persisted. Hence, investors would continue to scrutinize the latest development of the Brexit news in order to receive further trading signal. As of writing, GBP/USD appreciated by 0.01% to 1.3270.
In the commodities market, the crude oil price appreciated by 0.07% to $41.80 per barrel as of writing. The oil market edged higher following the Energy Information Administration (EIA) reported that the U.S Crude Oil inventories had declined from the previous reading of 4.278M to 0.768M, lesser than the market forecast of 1.650M. On the other hand, the gold price slumped 0.05% to $1871.80 per troy ounces as optimism toward the Covid-19 development had diminished the market demand for the safe-haven commodity.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16:00 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:30 | USD – Initial Jobless Claims | 709K | 705K | – |
| 21:30 | USD – Philadelphia Fed Manufacturing Index (Nov) | 32.3 | 24.0 | – |
| 23:00 | USD – Existing Home Sales (Oct) | 6.54M | 6.45M | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher following prior rebound from the support level at 92.15. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 92.55.
Resistance level: 92.45, 93.00
Support level: 92.10, 91.75
GBPUSD, H1: GBPUSD was traded lower following prior breakout below the previous support level at 1.3270. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3220.
Resistance level: 1.3270, 1.3310
Support level: 1.3220, 1.3160
EURUSD, H1: EURUSD was traded lower following prior breakout below the previous support level at 1.1855. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1810.
Resistance level: 1.1855, 1.1890
Support level: 1.1810, 1.1765
USDJPY, Daily: USDJPY was traded lower following prior breakout below the previous support level at 104.50. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 103.20.
Resistance level: 104.50, 106.05
Support level: 103.20, 101.25
AUDUSD, H4: AUDUSD was traded within a range while currently testing the resistance level at 0.7320. MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7320, 0.7430
Support level: 0.7220, 0.7100
NZDUSD, Weekly: NZDUSD was traded higher while currently testing the resistance level at 0.6930. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6930, 0.7110
Support level: 0.6760, 0.6510
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.3035. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.3105.
Resistance level: 1.3105, 1.3155
Support level: 1.3035, 1.2965
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9100. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.9140.
Resistance level: 0.9140, 0.9175
Support level: 0.9100, 0.9055
CrudeOIL, H4: Crude oil price was traded within a range while currently testing the resistance level at 42.25 MACD which illustrated increasing bullish momentum suggest the commodity to be traded higher after it successfully breakout above the resistance level.
Resistance level: 42.25, 43.70
Support level: 40.05, 38.65
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level at 1875.45. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1862.50.
Resistance level: 1875.45, 1894.85
Support level: 1862.50, 1851.15