21 May 2020 Morning Session Analysis
Sterling pound retraced amid poor economic data.
Sterling pound, which acting as one of major currencies traded by global investor was traded lower following the release of pessimistic inflation-related economic data yesterday. According to the Office of National Statistics, UK CPI for the month of April came in at 0.8%, blowing the market estimates of 0.9%, hinting the underlying inflation pressure in UK remain weak and vulnerable. Amidst the Covid-19 pandemic, UK economy has been tampered significantly while urging the government to implement lockdown’s measure to limit the negative effect of virus. Moreover, heightening of political uncertainty between UK and EU on Brexit issue also triggered huge sell-off pressure in pound market. As of now, both parties are yet to overcome the trade terms of Brexit while discussion is still going on from time to time. After UK entering into the transition period, EU and UK had held 3 round of negotiation but still lack of progress. Negotiators from both sides complaining that the terms and regulation proposed were unfair, usurping the benefit of one another. During Asian early trading session, the pair of GBP/USD dropped 0.03% to 1.2245.
In the commodities market, crude oil price appreciates by 0.09% to $33.55 per barrel amid data shows a surprise drop in oil inventories. According to the EIA institute, US Crude Oil Inventories data came in at -4.983M, blowing the estimates of economist at 1.151M, indicating the supply glut eased. Besides, gold price depreciates 0.05% to $1746.75 a troy ounce amid easing of market risk-off sentiment.
Today’s Holiday Market Close
Time Market Event
All Day CHF Ascension Day
Today’s Highlight Events
Time Market Event
02:30 USD Fed Chair Powell Speaks
(22th)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:30 | EUR – German Manufacturing PMI(May) | 34.5 | 39.2 | – |
| 16:30 | GBP – Composite PMI | 13.8 | – | – |
| 16:30 | GBP – Manufacturing PMI | 32.6 | – | – |
| 16:30 | GBP – Services PMI | 13.4 | – | – |
| 20:30 | USD – Initial Jobless Claims | 2,981K | 2,400K | – |
| 20:30 | USD – Philadelphia Fed Manufacturing Index (May) | -56.6 | -41.5 | – |
| 22:00 | USD – Existing Home Sales (Apr) | 5.27M | 4.30M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior breakout below the previous support level at 99.45. MACD which illustrate bearish momentum with the formation of death cross suggest the pair to extend its losses toward the support level at 98.30.
Resistance level: 99.45, 100.85
Support level: 98.30, 97.60
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the higher level. MACD which illustrates diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.2215.
Resistance level: 1.2305, 1.2370
Support level: 1.2215, 1.2115
EURUSD, Daily: EURUSD was traded higher following prior breakout above the previous resistance level at 1.0940. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.1025.
Resistance level: 1.1025, 1.1115
Support level: 1.0940, 1.0885
USDJPY, Daily: USDJPY was traded higher following prior breakout above the previous resistance level at 107.20. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 108.20.
Resistance level: 108.20, 109.40
Support level: 107.20, 106.25
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance level at 0.6555. MACD which illustrates diminishing bearish momentum signal suggest the pair to extend its gains after its candle successfully close above the resistance level.
Resistance level: 0.6555, 0.6705
Support level: 0.6370, 0.6180
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.6150. However, MACD which illustrates diminishing bullish momentum suggest the pair to extend its undergo technical correction in short term.
Resistance level: 0.6150, 0.6205
Support level: 0.6065, 0.5995
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.3980. MACD which illustrates bearish bias momentum suggest the pair to extend its losses toward the support level at 1.3855.
Resistance level: 1.3980, 1.4120
Support level: 1.3855, 1.3670
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.9660. MACD which illustrates bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9710, 0.9750
Support level: 0.9660, 0.9585
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 33.00. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 35.30.
Resistance level: 35.30, 41.05
Support level: 33.00, 30.50
GOLD_, H4: Gold price was traded lower following prior retracement from the higher level. MACD which illustrate bearish bias momentum signal suggest the commodity to extend its losses toward the support level at 1738.15.
Resistance level: 1757.60, 1766.35
Support level: 1738.15, 1726.05