20 August 2021 Afternoon Session Analysis
Pound fell amid Brexit concerns.
The pound sterling which traded against the dollar and other currency pairs have plunged amid rising concerns over Brexit immigration in the U.K. According to reports from the Financial Times, businesses were forced to reduce the scale of operations due to the newly revised immigration conditions that have resulted business in staff shortages. For example, a chicken supplier company was forced to reduce its supply following a failure to hire enough employees and it has resulted in disruptions to the operations of restaurants such as KFC and Nando’s. In addition, hundreds of banking staff have returned to the EU following the enforcement of immigration requirements since early last year. Investors fear that the strict Brexit immigration will change the fundamental situation in the UK and affect the U.K economic recovery. At the same time, the strength of the dollar which propelled by recent positive data and hawkish FOMC meeting also continue to weigh on the pair. At the time of writing, GBP/USD fell 0.09% to 1.3625.
In the commodities market, crude oil price fell 0.16% to $63.81 per barrel as of writing amid ongoing fears towards rising Delta variant cases which could jeopardize global economic recovery. According to a report by Medscape, France has recorded an average of 23,000 new cases in the past few days, most of which are from the Delta variant. Statistics also showed that the hospitalization rate has reached 10,000, the highest level since June this year. At the same time, Australia, New Zealand, Japan and other countries have announced movement control orders to curb the spread of the new coronavirus in their respective countries. On the other hand, gold price fell 0.09% to $1783.65 a troy ounce at the time of writing amid strengthening dollar.
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) (Jul) | 0.50% | 0.50% | – |
| 20:30 | CAD – Core Retail Sales (MoM) (Jun) | -2.00% | 4.40% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 93.45. MACD which illustrate persistent bullish momentum signal suggest the dollar to extend its gains toward the resistance level 93.80.
Resistance level: 93.80, 94.20
Support level: 93.45, 93.10
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.3600. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.3745, 1.3885
Support level: 1.3600, 1.3460
EURUSD, H4: EURUSD was traded lower following recent breakout below the previous support level 1.1705. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction back towards the level 1.1705.
Resistance level: 1.1705, 1.1765
Support level: 1.1625, 1.1545
USDJPY, H4: USDJPY was traded flat while currently testing the support level 109.70. However, MACD which illustrate bearish bias signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 110.50, 111.00
Support level: 109.70, 109.20
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level 0.7145. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses towards the support level 0.7075.
Resistance level: 0.7150, 0.7245
Support level: 0.7075, 0.7000
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level 0.6825. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher as a technical correction towards the resistance level 0.6925.
Resistance level: 0.6925, 0.7000
Support level: 0.6825, 0.6725
USDCAD, H4: USDCAD was traded higher while currently testing near the resistance level 1.2870. MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 1.2870, 1.2955
Support level: 1.2770, 1.2675
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level 0.9200. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement towards the support level 0.9135.
Resistance level: 0.9200, 0.9245
Support level: 0.9135, 0.9090
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level 63.45. However, MACD which illustrate diminishing bearish bias signal suggest the commodity to experience a technical correction towards the resistance level 65.65.
Resistance level: 65.65, 68.35
Support level: 63.45. 61.00
GOLD, H4: Gold price was traded lower following prior retracement from the resistance level 1792.35. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses towards the support level 1760.35.
Resistance level: 1792.35, 1831.85
Support level: 1760.35, 1725.50