20 January 2020 Afternoon Session Analysis
Pound dived amid Brexit’s uncertainty.
Pound sterling fall against other major country currencies as market concerned Brexit uncertainty will continue to tamper the economy growth of UK region. After Brexit legislation passed in the House of Common on 9th January without any amendment, the withdrawal agreement will now move into next stage where UK Prime Minister Boris Johnson must gain the approval from House of Lords with majority votes. In less than two week times until the Brexit deadline, a survey showed that there is only 47% of people support to leave European Union, indicating high unsureness across the entire UK toward the future path of Brexit. On the other sides, a member of European Parliament named Billy Kelleher has vowed that he will vote against Boris Johnson’s Brexit deal with no doubt as the deal seemingly will erode the rights of citizens in Northern Ireland. This comment is likely to spark up renewed uncertainty across the members of European Parliament, potentially dragging out the entire progress of Brexit legislation. As of writing, the pair of GBP/USD inched down 0.05% to 1.3000.
In the commodities market, crude oil price appreciated 0.60% to $59.15 per barrel as market concern over escalating tensions in North African believingly will affect the future crude oil supply. However, the gains of crude oil was limited after Baker Hughes rig oil count data reported a rise in number of rig oil. Besides, gold price rose 0.12% to $1558.00 a troy ounce amid weakening of dollar.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15.00 | EUR – German PPI (MoM) (Dec) | 0.0% | 0.2% | – |
Technical Analysis
DOLLAR_INDX, Daily：Dollar index was traded higher following prior breakout above the previous resistance level at 97.25. MACD which illustrate bullish bias momentum signal suggest the dollar to extend its gains toward the next resistance level at 97.70.
Resistance level: 97.70, 98.20
Support level: 97.25, 96.85
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.3035. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses toward the support level at 1.2965.
Resistance level: 1.3035, 1.3100
Support level: 1.2965, 1.2895
EURUSD, H4: EURUSD 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 1.1110.
Resistance level: 1.1110, 1.1160
Support level: 1.1075, 1.1035
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level 110.20. However, MACD which illustrate bearish bias momentum signal suggest the pair to experience a technical correction in short term towards the support level 109.65.
Resistance level: 110.20, 110.55
Support level: 109.65, 109.25
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6880. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.6925.
Resistance level: 0.6925, 0.6965
Support level: 0.6880, 0.6850
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the lower level. MACD which illustrate bearish momentum signal suggest the pair to undergo short term technical correction toward the support level at 0.6600.
Resistance level: 0.6620, 0.6650
Support level: 0.6600, 0.6570
USDCAD, Daily: USDCAD was traded higher following prior rebound from the support level at 1.3020. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the next resistance level at 1.3085.
Resistance level: 1.3085, 1.3145
Support level: 1.3020, 1.2960
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9665. MACD and price action which illustrate positive divergence signal suggest the pair to extend its gains toward the resistance level at 0.9690.
Resistance level: 0.9690, 0.9725
Support level: 0.9665, 0.9625
CrudeOIL, H1: Crude oil was traded lower following prior retracement from the resistance level at 59.70. MACD which illustrate diminishing bullish momentum signal suggests the commodity to extend its losses toward the support level at 58.60.
Resistance level: 59.70, 60.35
Support level: 58.60, 57.55
GOLD_, H4: Gold price was traded higher while currently testing the resistance level 1561.85. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1561.85, 1572.10
Support level: 1551.10, 1538.45