21 January 2020 Afternoon Session Analysis
Sterling depreciates following Brexit risks.
Euro was traded lower during Asian trading over the backdrop of bearish economic data from the region. As of writing, pair of EUR/USD notched down 0.03% to 1.1090. According to Destatis, Germany Producer Price Index (PPI) for the month of December came in at 0.1%, missing economist’s forecast of 0.2%. Although European Central Bank (ECB) noted that there is a “possible” indication for a rebound in inflationary pressure, recent data in terms of producer’s inflation shows a slower recovery momentum. On the other hand, pair of GBP/USD depreciates by 0.07% to 1.3000. Pound sterling received substantial selloff pressure from yesterday after UK Finance Minister Sajid Javid expresses pessimism over Brexit negotiation while signaling possible adverse effect upon UK businesses. In terms of economy, recent data released in the UK shows mixed signal as of late as we head towards Bank of England’s policy meeting at the end of the month. With its Consumer Price Index and Retail Sales shows substantial softness, it has increased investor’s speculation for further rate cut ahead from the central bank.
As for commodities, crude oil price depreciates by 0.39% to $58.61 per barrel. Oil futures received some selloff pressure after OPEC announced that next meeting will be held in March where market speculates that they may end additional production cuts introduced in late 2019. On the other hand, gold price rose 0.27% to $1,565.47 a troy ounce following higher risk aversion in the market as traders waits for more signals.
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 |
| 17.30 | GBP – Average Earnings Index +Bonus (Nov) | 3.2% | 3.1% | – |
| 17.30 | GBP – Claimant Count Change (Dec) | 28.8K | 22.6K | – |
Technical Analysis
DOLLAR_INDX, Daily：Dollar index was traded lower while currently testing the support level at 97.25. MACD which illustrate diminishing bullish momentum signal suggest the dollar to extend its losses after it successfully breakout below the support level at 97.25.
Resistance level: 97.70, 98.20
Support level: 97.25, 96.85
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.2965. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 1.3035.
Resistance level: 1.3035, 1.3100
Support level: 1.2965, 1.2895
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.1075. 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 lower following prior retracement from the resistance level at 110.20. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 109.65.
Resistance level: 110.20, 110.55
Support level: 109.65, 109.25
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.6880. However, MACD which illustrate diminishing bearish momentum suggest the pair to undergo technical correction toward the resistance level at 0.6880.
Resistance level: 0.6880, 0.6925
Support level: 0.6850, 0.6815
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6600. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 0.6620.
Resistance level: 0.6620, 0.6650
Support level: 0.6600, 0.6570
USDCAD, H4: USDCAD was traded flat near the 20 (Red) and 50 (Blue) moving average lines. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 1.3085, 1.3145
Support level: 1.3025, 1.2960
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9690. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.9665.
Resistance level: 0.9690, 0.9725
Support level: 0.9665, 0.9625
CrudeOIL, H4: Crude oil was traded lower while currently testing the support level at 58.60. MACD which illustrate diminishing bullish momentum signal suggests the commodity to extend its losses after it successfully breakout below 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 at 1561.85. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains after its candle successfully close above the resistance level at 1561.85.
Resistance level: 1561.85, 1572.10
Support level: 1551.10, 1538.45