23 August 2021 Morning Session Analysis
Pound slumped amid bearish data.
The Pound Sterling slumped over the backdrop of bearish economic data from United Kingdom yesterday, which dialed down the market optimism toward the economic progression in U.K. According to Office for National Statistics, U.K. Retail Sales had notched down significantly from the previous reading of 0.2% to -2.5%, missing the market forecast at 0.4%. Such bearish economic data indicated that the consumer spending in U.K. remained subdued amid spiking numbers of Delta variant had limited some economic activity. According to Reuters, U.K. reported another 32,253 new cases of Covid-19 while another 49 people were recorded as having died from the infections. In addition, the risky asset such as Pound Sterling extend its losses amid investors fear that the spiking numbers of the Covid-19 cases could continue to dampen the economic outlook, which diminishing risk appetite in the FX market while prompting investors to shift their portfolio from the risky asset such as Pound Sterling into another safe-haven asset. As of writing, GBP/USD depreciated by 0.03% to 1.3621.
In the commodities market, the crude oil price slumped 0.05% to $62.35 per barrel as of writing amid investors sold the crude oil futures in anticipation of weakened fuel demand worldwide due to a significant surge in Covid-19 cases. On the other hand, the gold price depreciated by 0.08% to 1779.54 per troy ounces as of writing amid market participants speculated that the Federal Reserve might provide hawkish statement in this week during the Fed’s central bank conference in Jackson Hole.
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 |
| 15:30 | EUR – German Manufacturing PMI (Aug) | 0.50% | 65.0 | – |
| 16:30 | GBP – Composite PMI (Aug) | 59.2 | – | – |
| 16:30 | GBP – Manufacturing PMI (Aug) | 60.4 | – | – |
| 16:30 | GBP – Services PMI (Aug) | 59.6 | – | – |
| 22:00 | USD – Existing Home Sales (Jul) | 5.86M | 5.81M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 93.25. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 92.25, 92.65
Support level: 91.80, 90.75
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3605. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3730, 1.3805
Support level: 1.3605, 1.3415
EURUSD, H4: EURUSD was traded within a range while currently testing the resistance level at 1.1705. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1705, 1.1775
Support level: 1.1635, 1.1550
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 109.75. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 110.55, 111.10
Support level: 109.75, 109.20
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.7115. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7240, 0.7375
Support level: 0.7115, 0.7000
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6915. MACD which illustrated increasing bearish momentum suggest the pair to extend it losses toward support level at 0.6765.
Resistance level: 0.6915, 0.7120
Support level: 0.6765, 0.6675
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.2935. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.2770.
Resistance level: 1.2935, 1.3040
Support level: 1.2770, 1.2670
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9135. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9230, 0.9305
Support level: 0.9135, 0.9035
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 62.45. MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 63.55, 65.05
Support level: 61.45, 59.25
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1773.35. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1794.30, 1812.50
Support level: 1773.35, 1754.40