23 October 2018 Morning Session Analysis
Sterling slides as Brexit turns ugly.
US dollar regains its bullish momentum against other major currencies following a large selloff in pound sterling amid Brexit issues and internal political stirrup. According to The Telegraph, a proposed amendment from a group of Brexiters within UK Prime Minister Theresa May’s party could effectively make the EU’s Irish border backstop proposal illegal. In addition to that, it was alleged that Northern Irish Democratic Unionist Party whom works hand-in-hand to form May’s minority government gave their support towards the amendment. The report evoked higher risk aversion in the financial market as Theresa May will face leadership challenge as her attempts to unlock Brexit talks by extending the transition period beyond the end date received strong rejection from members within her party. As for now, investors will place their attention upon her party’s committee meeting which is scheduled to be held today to discuss Brexit negotiations and terms for further signals. As of writing, dollar index ticks up 0.02% to 95.72 while GBP/USD was down 0.05% to 1.2963.
As for commodities market, crude oil price depreciates by 0.04% to $69.49 per barrel. The commodity price was traded in a sideways fashion as investors weigh the imminent outcome of Iran sanction and increasing supply from the United States. Otherwise, gold price notched up 0.05% to $1,222.70 a troy ounce following higher political and economic uncertainty that arises in the UK due to Brexit issues.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
21:30 USD FOMC Member Kashkari Speaks
23:20 GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 14:00 | EUR – German PPI (MoM) (Sep) | 0.3% | 0.3% | – |
| 18:00 | GBP – CBI Industrial Trends Orders (Oct) | -1 | -1 | – |
| 04:30 (24th) | CrudeOIL – API Weekly Crude Oil Stock | -2.100M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing at the strong resistance level of 95.75. While MACD has formed a bullish signal, a break above this level is required to attain further confirmation.
Resistance level: 95.75, 96.00
Support level: 95.50, 95.20
GBPUSD, H4: GBPUSD extended its losses while currently testing near the support level of 1.2955. MACD which has formed a death cross formation suggests the pair to advance further down after closing below 1.2955.
Resistance level: 1.2980, 1.3015
Support level: 1.2955, 1.2910
EURUSD, H4: EURUSD was traded lower while currently testing near the support level of 1.1460. MACD which begins to form a death cross formation suggests the pair to extend its losses after breaking the support of 1.1460.
Resistance level: 1.1495, 1.1525
Support level: 1.1460, 1.1420
USDJPY, H1: USDJPY was traded lower following prior retrace from the top level. MACD which has formed a death cross formation suggests the pair to undergo technical correction and to be traded lower in short-term.
Resistance level: 113.05, 113.40
Support level: 112.70, 112.45
AUDUSD, H4: AUDUSD was traded lower following prior breakout from the support level at 0.7090. MACD which has formed a death cross signal suggests the pair to extend its losses towards the direction near 0.7045.
Resistance level: 0.7090, 0.7130
Support level: 0.7045, 0.7000
NZDUSD, H4: NZDUSD was traded lower while currently testing at the neckline of double top formation. Although MACD has formed a death cross signal, a break below the neckline is required to attain further confirmation.
Resistance level: 0.6575, 0.6610
Support level: 0.6540, 0.6500
USDCAD, H4: USDCAD was traded lower following a retrace from the downward trendline. MACD which begins to form a death cross signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3155, 1.3255
Support level: 1.3085, 1.3010
USDCHF, H1: USDCHF remains traded within a sideways channel while currently testing at the mid-level. Due to the lack of signal from MACD and price action, it is suggested to wait for a breakout to occur before entering the market.
Resistance level: 0.9975, 1.0000
Support level: 0.9945, 0.9915
CrudeOIL, H1: Crude oil price remains traded within a sideways channel following prior retrace from the top level. Stochastic Oscillator which forms a death cross formation suggests the commodity price to be traded lower in short-term after breaking the target near 69.30.
Resistance level: 69.75, 70.65
Support level: 69.30, 68.55
GOLD_, H1: Gold price remains traded within a narrowing triangle while recently rebounded from the lower level. MACD which begins to form a golden cross signal suggests the commodity price to be traded higher in short-term after breaking the target of 1223.45.
Resistance level: 1223.45, 1228.00
Support level: 1218.00, 1210.60