26 January 2021 Morning Session Analysis
Euro dipped after EU intended to impose stricter travel restriction.
The single currency of European Union slipped after European Union executive body proposed on yesterday that EU should implement more travel restrictions in order to combat the spread of new virus variants among these bloc nations. With the backdrop against mutated virus, testing and quarantine measures should be come in to force in EU nation as the new variant of virus has been proven that it is more transmissible than the previous type of virus, urged by European Commission. Later last week, part of the EU bloc such as France has implemented new border control as an effort to keep away their country from new variant of virus, while avoiding the possibility of another nationwide lockdown in the future. On data front, German IFO Business Climate data has reported a weaker than expectation reading, sparked further sell-off pressure in euro market. According to Ifo Institute, German IFO Business Climate data came in at 90.1, missing the estimation at 91.8, indicating that local businesses has turned slightly pessimistic toward the economic growth in the future. As of writing, the pair of EUR/USD ticked up 0.05% to 1.2140.
In the commodities market, the crude oil price rebounds by 0.02% to $52.80 per barrel as of writing following Iraq promise to cut their oil production in the upcoming weeks to make up for the excess production last year. While comparing the oil production in recent months, Iran will decrease their average daily output to 3.6 million barrels in January and February, lower than the 3.85 million barrels of oil output in the month of December. Besides, gold price appreciated by 0.03% to $1855.50 a troy ounce amid market worries over the new variants of virus continue weighing on this safe haven asset.
Today’s Holiday Market Close
Time Market Event
All Day AUD Australia Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | GBP – Average Earning Index + Bonus (Nov) | 2.7% | 2.9% | – |
| 15:00 | GBP – Claimant Count Change (Dec) | 64.3K | 35.0K | – |
| 23:00 | USD – CB Consumer Confidence (Jan) | 88.6 | 89.0 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level at 90.25. MACD which illustrated bullish bias momentum suggest the index to extend its gains toward the resistance level at 90.60.
Resistance level: 90.60, 91.10
Support level: 90.25, 89.90
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the lower level. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher toward the resistance level at 1.3700.
Resistance level: 1.3700, 1.3805
Support level: 1.3620, 1.3535
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.2120. However, MACD which illustrated bearish bias momentum suggest the pair to be traded lower in short term toward the lower level.
Resistance level: 1.2155, 1.2205
Support level: 1.2120, 1.2065
USDJPY, H4: USDJPY was traded higher while currently testing the downward trendline. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 103.70.
Resistance level: 104.00, 104.35
Support level: 103.70, 103.35
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7735. However, MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.7735.
Resistance level: 0.7735, 0.7770
Support level: 0.7670, 0.7635
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the higher level. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.7165.
Resistance level: 0.7235, 0.7305
Support level: 0.7165, 0.7090
USDCAD, H4: USDCAD was traded lower following prior retracement from the top level of downward channel. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.2695.
Resistance level: 1.2800, 1.2865
Support level: 1.2695, 1.2615
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level at 0.8885. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.8885.
Resistance level: 0.8885, 0.8915
Support level: 0.8855, 0.8820
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 52.60. MACD which illustrated bullish bias momentum suggest the commodity to extend its gains toward the resistance level at 53.75.
Resistance level: 53.75, 54.50
Support level: 52.60, 51.65
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1861.05. MACD which illustrated bearish bias momentum suggest the commodity to extend its losses toward the support level at 1842.90.
Resistance level: 1861.05, 1871.90
Support level: 1842.90, 1825.40