21 August 2019 Morning Session Analysis
Sterling rebounds, greenback retraces.
Pound sterling rose sharply on yesterday following higher hopes of EU’s concession on Irish backstop. Responding to UK Prime Minister Boris Johnson’s letter, EU said that they regret that UK did not provide any concrete proposals for alternative arrangements to replace Irish backstop while reiterating that the Brexit Agreement will not be reopened for negotiations. Subsequently, German Chancellor Angela Merkel commented that the backstop is a political declaration of future ties rather, reviving hopes that EU could make concession in order to avoid a no-deal Brexit. However, gains on the sterling was short-lived after Merkel emphasized that the agreement will not be renegotiated. For the time being, investors would continue to monitor Brexit developments in between UK and EU in order to gauge the likelihood of a no-deal Brexit by 31st October 2019. In a quiet economic calendar on yesterday, US dollar begins to stage a retrace from its prior yearly high as investors shifts their focus towards other assets in the market. Limelight will be placed upon Fed Chair Jerome Powell’s speech this Friday which could provide more info on future policy guidance as well as comments with regards to US economic progression. As of writing, pair of GBP/USD ticked down 0.03% to 1.2163 while the dollar index slumped 0.20% to 97.97.
In the commodities section, crude oil price rose 0.07% to $56.12 per barrel. Oil futures were well in bid as traders speculate for another week of crude storage drawdown in the US. As such, the official inventories data from Energy Information Administration later tonight would provide significant momentum to the crude oil price. On the other hand, gold price slipped 0.05% to $1,506.73 a troy ounce due to profit seeking after rising more than $14 on yesterday.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
02:00 (22nd) USD FOMC Meeting Minutes
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | CAD – Core CPI (MoM) (Jul) | 0.0% | – | – |
| 22:00 | USD – Existing Home Sales (Jul) | 5.27M | 5.39M | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 1.580M | -1.889M | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher following a rebound from 97.95. MACD which illustrate diminished downward momentum suggests the index to be traded higher in short-term.
Resistance level: 98.30, 98.65
Support level: 97.95, 97.80
GBPUSD, H1: GBPUSD was traded lower following prior retracement from 1.2170. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2170, 1.2205
Support level: 1.2140, 1.2090
EURUSD, H4: EURUSD was traded lower following prior retrace from its higher levels. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term after closing below the 20-MA line (red).
Resistance level: 1.1115, 1.1170
Support level: 1.1070, 1.1025
USDJPY, H4: USDJPY was traded lower following prior retrace from the top level of sideways channel. MACD which forms a bearish signal suggests the pair to be traded lower after closing below the 60-MA line (green).
Resistance level: 106.80, 107.25
Support level: 105.60, 105.05
AUDUSD, H4: AUDUSD remains traded within a descending channel. Stochastic Oscillator which illustrate bearish signal suggests the pair to be traded lower, towards the direction of 0.6750.
Resistance level: 0.6830, 0.6925
Support level: 0.6750, 0.6675
NZDUSD, H1: NZDUSD was traded lower following prior retrace from the downward trendline. MACD which forms a bearish signal suggests the pair to extend its losses, towards the direction of 0.6400.
Resistance level: 0.6420, 0.6440
Support level: 0.6400, 0.6370
USDCAD, H4: USDCAD was traded lower following prior retrace from the resistance of 1.3335. MACD which begins to form a bearish signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3335, 1.3375
Support level: 1.3280, 1.3220
USDCHF, H4: USDCHF was traded higher following a rebound from 0.9775. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9820, 0.9890
Support level: 0.9775, 0.9700
CrudeOIL, H4: Crude oil price was traded higher while currently testing at the top level of descending channel. MACD which illustrate bullish bias suggests its price to extend its gains after breaking the top level.
Resistance level: 57.30, 58.70
Support level: 55.55, 54.45
GOLD_, H1: Gold price was traded lower following a retrace from 1509.00. MACD which illustrate diminished upward momentum suggests its price to be traded lower in short-term after closing below the 60-MA line (green).
Resistance level: 1509.00, 1523.00
Support level: 1494.50, 1483.50