26 July 2021 Morning Session Analysis
Pound was traded flat amid mixed data.
Pound Sterling was traded flat on last Friday over the backdrop of mixed economic data from the United Kingdom. According to Office for National Statistics, U.K. Retail Sales MoM had notched up significantly from the previous reading of -1.3% to 0.5%, exceeding the market forecast at 0.4%, which indicating that the economic momentum had started to improve slowly following the lock-down restriction was eased. Nonetheless, the gains experienced by the Pound Sterling was limited following the negative PMI data was released. Markit Economics reported that the U.K. Composite Purchasing Managers’ Index (PMI) declined significantly from the preliminary reading of 62.2 to 57.7, missing the market forecast at 61.9. Meanwhile, U.K. Manufacturing Purchasing Managers Index (PMI) and U.K. Services Purchasing Managers Index (PMI) both came in at 60.4 and 57.8, which also worse than market expectation at 62.7 and 62.0 respectively. As of writing, GBP/USD appreciated by 0.11% to 1.3760.
In the commodities market, the crude oil price surged 0.01% to 72.45 per barrel as of writing. The oil market extends its gains amid market participants remained optimism that the positive progression of Covid-19 vaccination program would able to increase the oil demand in future. On the other hand, the gold price was traded flat at $1802.20 per troy ounces as of writing amid market participants are still waiting for further catalyst before entering the gold market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:00 | EUR – German Ifo Business Climate Index (Jul) | 101.8 | 102.1 | – |
| 22:00 | USD – New Home Sales (Jun) | 769K | 800K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 92.70. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 93.25.
Resistance level: 93.25, 94.10
Support level: 92.70, 92.00
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3740. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3900, 1.3980
Support level: 1.3740, 1.3565
EURUSD, Daily: EURUSD was traded lower following prior breakout below the previous support level at 1.1850. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1850, 1.1955
Support level: 1.1725, 1.1635
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 110.55. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 110.55, 110.95
Support level: 109.75, 109.05
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7410. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.7320.
Resistance level: 0.7410, 0.7495
Support level: 0.7320, 0.7240
NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level at 0.6915. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7120.
Resistance level: 0.7120, 0.7305
Support level: 0.6915, 0.6770
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2560. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2670, 1.2770
Support level: 1.2560, 1.2440
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9230. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9230, 0.9305
Support level: 0.9135, 0.9035
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 72.30. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 72.30, 74.80
Support level: 69.85, 68.00
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1813.05. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 1788.95.
Resistance level: 1813.05, 1832.25
Support level: 1788.95, 1773.45