25 November 2020 Afternoon Session Analysis
Pound lingered while Brexit talks set to resume Friday.
Pound sterling which acting as one of the major trading currency in FX market was having mixed pattern while staying above the level at 1.3350 while market participants are still remain cautious toward the upcoming resumed talk on Friday. Last week, UK and EU talk was unable to bring up the major issue onto the table as a member of Barnier’s team had tested positive in Covid-19 swab test, forcing the negotiator from both sides to postpone their talks to this week. Recently, there have been numerous reports indicated that a deal could be secured by EU and UK, which have high possibility to end the threat of Hard-Brexit on 31st December. Therefore, market participants are putting their attention over the further talks between UK and EU in order to determine their investment strategy as a Hard-Brexit may definitely drag down the value of pound whereas Soft-Brexit would benefited the single currency of pound. Yesterday, the Bank of England Governor Andrew Bailey has reiterated that a Brexit with no deal between UK and EU would exerted more damage to the UK economy over the long run than the pandemic. As of writing, the pair of GBP/USD rose 0.02% to 1.3359.
In the commodities market, the crude oil price appreciated by 1.38% to $45.52 per barrel as of writing amid encouraging news from vaccine’s development continue supporting the rally of oil price. However, majority of the investors are now eyeing on the upcoming OPEC+ meeting which may provide further sight of oil market’s demand outlook. Besides, gold price drop 0.28% to $1802.75 a troy ounce amid market risk on sentiment heightened.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative GBP Autumn Budget
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21.30 | USD – Core Durable Goods Orders (MoM) (Oct) | 0.8% | 0.5% | – |
| 21.30 | USD – GDP (QoQ) (Q3) | 33.1% | 33.2% | – |
| 21.30 | USD – Initial Jobless Claims | 742K | 730K | – |
| 23.00 | USD – New Home Sales (Oct) | 959K | 970K | – |
| 23.30 | CrudeOIL – Crude Oil Inventories | 0.768M | 0.127M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 92.15. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 91.75.
Resistance level: 92.15, 92.60
Support level: 91.75, 91.25
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.3310. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3400, 1.3475
Support level: 1.3310, 1.3220
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1885. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.1925.
Resistance level: 1.1925, 1.1965
Support level: 1.1855, 1.1810
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 104.65. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 104.30.
Resistance level: 104.65, 104.95
Support level: 104.30, 103.85
AUDUSD, H1: AUDUSD was traded higher while currently testing the resistance level at 0.7365. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7365, 0.7415
Support level: 0.7320, 0.7270
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.6915. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6980, 0.7010
Support level: 0.6955, 0.6935
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.3010. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2960.
Resistance level: 1.3010, 1.3095
Support level: 1.2960, 1.2875
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9100. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9140, 0.9175
Support level: 0.9100, 0.9055
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 44.75. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 46.25.
Resistance level: 46.25, 47.85
Support level: 43.35, 41.70
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level at 1813.95. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1813.95, 1835.15
Support level: 1782.00, 1761.80