22 January 2019 Afternoon Session Analysis
Sterling jitters, greenback flattens.
Pound sterling was traded lower during mid-Asian trading session amid Brexit uncertainty while market participants waits for further signal from the market. As of writing, pair of GBP/USD depreciates by 0.08% to 1.2879. Following UK Prime Minister Theresa May’s defeat in the Parliament last week, UK Labour Party lead by Jeremy Corbyn has proposed a plan to force for a second Brexit referendum which will be voted by parliament next week. If a majority back for the referendum, the Parliament could force Theresa May to held out a new public vote which may bring to the reversal of Brexit. On the other hand, greenback was traded flat around 95.95 as investors wait for more progress with regards to US-China trade talks. According to Wall Street Journal, US Treasury Secretary Steven Mnuchin is in favour of easing tariffs upon Chinese goods which may further diminish trade tension between both countries. However, the US Treasury Department denies the news, sending mixed signals in the market.
As for commodities market, crude oil price tumbled 0.83% to $53.47 per barrel. Oil prices received some bearish selloff after International Monetary Fund trimmed its global growth forecasts, signalling possibility of a slowdown in crude demands worldwide. Otherwise, gold price depreciates by 0.13% to $1,278.67 a troy ounce following higher demand on risky assets.
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 | Market & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Average Earnings +Bonus (Nov) | 3.3% | 3.3% | – |
| 17.30 | GBP – Claimant Count Change (Dec) | 21.9K | 20.0K | – |
| 18.00 | EUR – German ZEW Economic Sentiment (Jan) | -17.5 | -18.4 | – |
| 23.00 | USD – Existing Home Sales (Dec) | 5.32M | 5.25M | – |
| 05:45 (23rd) | NZD – CPI (QoQ) (Q4) | 0.9% | 0.0% | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher following prior rebound from the upward trendline. MACD which illustrate diminished downward momentum suggests the index to advance further upwards after closing above 96.10.
Resistance level: 96.10, 96.50
Support level: 95.75, 95.30
GBPUSD, H4: GBPUSD was traded lower following prior retrace from the resistance of 1.2910. MACD which continues to illustrate bearish signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2910, 1.2960
Support level: 1.2860, 1.2800
EURUSD, H1: EURUSD was traded lower following prior retrace from the upper level of descending channel. MACD which begins to form a death cross signal suggests the pair to extend its losses, towards the lower level of the channel.
Resistance level: 1.1380, 1.1420
Support level: 1.1330, 1.1310
USDJPY, H1: USDJPY was traded lower following prior retracement from previous high. MACD which has formed a bearish signal suggests the pair to extend its losses after successfully closing below the support of 109.35.
Resistance level: 109.90, 110.25
Support level: 109.35, 108.95
AUDUSD, H1: AUDUSD was traded lower following prior closure below the support of 0.7145. MACD which illustrate the formation of bearish signal suggests the pair to extend its losses, towards the direction of 0.7110.
Resistance level: 0.7145, 0.7180
Support level: 0.7110, 0.7070
NZDUSD, H4: NZDUSD was traded flat while currently testing near the support level of 0.6710. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6780, 0.6840
Support level: 0.6710, 0.6645
USDCAD, H1: USDCAD was traded higher while currently testing near the resistance level at 1.3320. MACD which has formed a golden cross signal suggests the pair to advance further upwards after successfully closing above the target of 1.3320.
Resistance level: 1.3320, 1.3360
Support level: 1.3290, 1.3260
USDCHF, H1: USDCHF was traded higher following prior rebound from the upward trendline. MACD which illustrate diminished downward momentum suggests the pair to extend its gains after successfully closing above 0.9990.
Resistance level: 0.9990, 1.0020
Support level: 0.9950, 0.9905
CrudeOIL, H1: Crude oil price was traded lower following prior retracement and closure below 54.10. MACD which has formed a death cross signal suggests its prices to be traded lower in short-term as technical correction.
Resistance level: 54.10, 55.55
Support level: 52.75, 51.50
GOLD_, H1: Gold price was traded lower following prior closure below the support level of 1280.00. MACD which illustrate diminished upward momentum suggests its prices to advance further down, towards the direction of 1273.55.
Resistance level: 1280.00, 1284.35
Support level: 1273.55, 1263.20