23 July 2019 Morning Session Analysis
Sterling droops as UK select the next Prime Minister.
Pound sterling received substantial selloff on Monday as UK Conservative Party begins their voting in choosing their next Prime Minister later today. As of writing, pair of GBP/USD rebounds by 0.04% to 1.2479. For the time being, either Boris Johnson or Jeremy Hunt will be announced as the successor to Theresa May later today. According to recent reports, Boris Johnson whom is a hard Brexit advocate is currently regarded as the frontrunner for the Prime Minister selection. However, UK Foreign Minister Sir Alan Duncan resigned on yesterday in protest over the possibility of Johnson being selected as the next leader of the Parliament. Duncan is also expected to push for an emergency vote after the new PM has been announced. Due to heightened political and Brexit risk in the region, market participants sold off their position on the pound sterling and enters into other assets in the market. On the other hand, the dollar index rose 0.15% to 96.90 against six major currencies. For the time being, investors will place their attention upon Friday’s release of Gross Domestic Product before shifting their focus towards Federal Reserve monetary policy meeting bound to be held next week.
In the commodities market, crude oil price depreciates by 0.14% to $56.03 per barrel. Oil prices seesawed within a tight range following mixed signals that are present in the market such as geopolitical tension in between US-Iran and ongoing trade war. On the other hand, gold price ticked down 0.04% to $1,423.99 a troy ounce while traders look ahead towards the next release of US economic data 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 |
| 22:00 | USD – Existing Home Sales (Jun) | 5.34M | 5.35M | – |
| 04:30
(24th) |
CrudeOIL – API Weekly Crude Oil Stock | -1.401M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher after breaking the top level of descending channel. MACD which illustrate bullish signal suggests the index to advance further up, towards the direction of 97.05.
Resistance level: 97.05, 97.50
Support level: 96.75, 96.35
GBPUSD, H1: GBPUSD was traded lower following prior retrace from the upper levels. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower, towards the direction of 1.2450.
Resistance level: 1.2500, 1.2535
Support level: 1.2450, 1.2400
EURUSD, H4: EURUSD remains traded within a sideways channel while currently testing at the bottom. MACD which has formed a bearish signal suggests the pair to extend its losses after closing below 1.1200.
Resistance level: 1.1245, 1.1275
Support level: 1.1200, 1.1150
USDJPY, H4: USDJPY was traded higher following prior breakout from the top level of the descending channel. MACD which illustrate bullish signal suggests the pair to extend its gains in mid-term towards the direction of 108.25.
Resistance level: 108.25, 108.50
Support level: 107.70, 107.30
AUDUSD, H4: AUDUSD was traded lower following prior retrace from its higher level. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7040, 0.7070
Support level: 0.7000, 0.6960
NZDUSD, H4: NZDUSD was traded lower while currently testing the support of 0.6735. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 0.6735.
Resistance level: 0.6765, 0.6840
Support level: 0.6735, 0.6710
USDCAD, H4: USDCAD was traded higher following prior rebound from its lower level. MACD which illustrate bullish signal suggests the pair to extend its gains, towards the direction of 1.3140.
Resistance level: 1.3140, 1.3220
Support level: 1.3060, 1.3010
USDCHF, H4: USDCHF was traded higher following prior rebound from lower levels. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9835, 0.9890
Support level: 0.9805, 0.9730
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from its higher level. MACD which illustrate diminished upward momentum suggests its prices to be traded lower after closing below the 20-MA line (red).
Resistance level: 57.25, 58.85
Support level: 55.70, 55.00
GOLD_, H1: Gold price was traded lower while currently testing near the support of 1423.00. MACD which begins to form a bearish signal suggests its prices to extend its losses after closing below 1423.00.
Resistance level: 1435.00, 1448.00
Support level: 1423.00, 1415.00