24 May 2021 Morning Session Analysis
Pound remained bullish amid positive Covid-19 vaccine development.
The overall trend for the GBP/USD pair remained bullish on last week amid the positive prospect for the Covid vaccination in United Kingdom had dialled up the market optimism toward the economic progression. Nonetheless, the Pound Sterling retraced from its recent high due to technical correction. On the economic front, the UK economy is bouncing back strongly from months of lockdown slump and the onslaught of Brexit, with key economic indicators surging as restriction are eased following the Covid-19 cases in UK region declined significantly. According to Office for National Statistics, U.K. Retail Sales for last month had notched up significantly from the previous reading of 5.1% to 9.2%, exceeding the market forecast at 4.5%. Similarly, U.K. Manufacturing Purchasing Managers Index (PMI) and U.K. Services Purchasing Managers Index (PMI) had both came in at 66.1 and 61.8, which also better than the market forecast at 60.7 and 60.1 respectively. According to Reuters, the UK Central Bank forecast that the economy would grow by 7.25% this year after slumping by nearly 10% in 2020. As of writing, GBP/USD appreciated by 0.04% to 1.4145.
In the commodities market, the crude oil price surged 0.17% to $63.75 per troy ounces as of writing. The oil price edged higher following the Sultan Ahmed Al Jaber, chief executive of the Abu Dhabi National Oil Company claimed that the oil demand has risen to 95 million per days while forecasting the oil demand will continue to increase until 106 million bpd by 2030 following the resolution of Covid-19. On the other hand, the gold price surged 0.10% to $1881.25 per troy ounces as of writing amid the fears of inflation risk in future, prompting some investors to shift their portfolio into safe-haven commodity in order to hedge against the inflation risk.
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 89.65. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 90.50.
Resistance level: 90.50, 91.30
Support level: 89.65, 89.10
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.4130. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.4130, 1.4335
Support level: 1.4130, 1.4000
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.2165. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2240, 1.2295
Support level: 1.2165, 1.2065
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 108.55. MACD which illustrated increasing bullish momentum suggest the pair to extend its gain toward resistance level at 109.20.
Resistance level: 109.20, 109.65
Support level: 108.55, 108.10
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7715. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7780, 0.7815
Support level: 0.7715, 0.7685
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7155. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7235, 0.7300
Support level: 0.7155, 0.7110
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.2055. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term amid technical correction.
Resistance level: 1.2265, 1.2400
Support level: 1.2055, 1.1840
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.8965. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9075, 0.9155
Support level: 0.8965, 0.8875
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 63.35. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 64.45.
Resistance level: 64.45, 66.30
Support level: 61.95, 60.65
GOLD_, Daily: Gold price was traded higher following prior breakout above the previous resistance level at 1869.80. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1907.95, 1949.60
Support level: 1869.80, 1841.65