24 October 2019 Morning Session Analysis
Sterling hovers as Brexit drags on.
Forex market were rather quiet during early Asian trading session while Brexit uncertainty continues to linger. Yesterday, UK lawmakers vote in principal for a Brexit deal but rejected against UK PM Boris Johnson’s timetable to pass a Brexit deal within three days. The rejection forces Johnson to threaten for a general election before Christmas if an extension is being approved by EU27. Last week, UK has formally requested for an extension of 31st October Brexit deadline but EU27 has yet to offer any answers as of now. Citing three senior EU diplomats, Reuters reported that EU may deliver their final decision this Friday and it will most likely be a three-months delay until end of January 2020. As of writing, pair of GBP/USD was traded flat near 1.2915. In the US region, greenback continues to remain under pressure as recent release of earning reports spur higher concerns of diminishing economic momentum and further rate cuts from the Federal Reserve. According to Fed Rate Monitor Tool, the probability for a 25-basis point cut during month end policy meeting has jumped from 93.0% to 94.1% as of writing. During Asian trading session, the dollar index was quoted down 0.06% to 97.17.
In the commodities market, crude oil price slumped 0.31% to $55.58 per barrel. Oil futures remained under pressure as recent earning reports from the US shows lower-than-expected results which spur higher concern for an economic recession. Recession may in return led to lower economic activity that would translate to lower demand for the commodity in the future. On the other hand, gold price rose 0.04% to $1,492.53 a troy ounce due to weaker greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:30 EUR ECB Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:30 | EUR – German Manufacturing PMI (Oct) | 41.7 | 42.0 | – |
| 19:45 | EUR – ECB Interest Rate Decision (Oct) | 0.00% | 0.00% | – |
| 20:30 | USD – Core Durable Goods Orders (MoM) (Sep) | 0.5% | -0.2% | – |
| 20:30 | USD – Initial Jobless Claims | 214K | 216K | – |
| 22:00 | USD – New Home Sales (Sep) | 713K | 710K | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the index to be traded higher in short-term.
Resistance level: 97.35, 97.60
Support level: 97.15, 96.95
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term.
Resistance level: 1.2950, 1.3035
Support level: 1.2820, 1.2665
EURUSD, H4: EURUSD was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term.
Resistance level: 1.1145, 1.1180
Support level: 1.1085, 1.1005
USDJPY, H4: USDJPY was traded lower following prior retrace from 108.75. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 108.75, 109.30
Support level: 108.45, 108.20
AUDUSD, H1: AUDUSD was traded flat near the support level of 0.6850. However, MACD which illustrate diminished upward momentum suggests the pair to extend its losses after closing below 0.6850.
Resistance level: 0.6885, 0.6910
Support level: 0.6850, 0.6815
NZDUSD, H1: NZDUSD was traded lower following prior retrace from 0.6435. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6425, 0.6440
Support level: 0.6410, 0.6365
USDCAD, Weekly: USDCAD was traded lower while currently testing near the support level of 1.3050. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 1.3050.
Resistance level: 1.3285, 1.3430
Support level: 1.3050, 1.2860
USDCHF, H4: USDCHF was traded higher following prior rebound from the lower level. However, MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9925, 0.9970
Support level: 0.9865, 0.9820
CrudeOIL, H1: Crude oil price was traded lower following prior retrace from its higher levels. MACD which illustrate diminished upward momentum suggest its price to be traded lower in short-term as technical correction.
Resistance level: 56.70, 57.30
Support level: 55.55, 54.45
GOLD_, H4: Gold price remains traded within a sideways channel formation. Due to the lack of signal from MACD and price action, it is suggested to wait for a breakout before entering the market.
Resistance level: 1496.00, 1511.00
Support level: 1484.05, 1477.00