27 February 2020 Afternoon Session Analysis
GBP slumped ahead of trade talks.
Pound sterling recovered some losses this morning after experiencing deep selloff on yesterday as investors brace ahead of rocky EU-UK trade talks starting next week. Both UK and EU have agreed to begin their trade talks on 2nd March while investors worried that tough rhetoric and hard stance in between both sides may led to a fallout. Prior, EU’s Chief Negotiator Michel Barnier said that EU would not agree to a deal “at any price” and while rebuffing the idea of offering UK with a Canada-style trade agreement. A Canada-style trade agreement aims to reduce or demolish tariffs on certain types of products while also increases purchase quotas in between both countries. In the other region, US dollar was opened lower this morning following speculations over possibilities for more rate cuts later this year. According to Wall Street Journal, the probability of US Federal Reserve cutting its interest rates three times for the year has rose to 80%. The odds have risen significantly over the past two weeks as coronavirus began to spread outside of China while raising the possibility of inducing large scale of economic slowdown globally. As of writing, pair of GBP/USD rose 0.09% to 1.2917 while the dollar index ticked down 0.02% to 98.88.
In the commodities market, crude oil price slumped 1.30% to $47.87 per barrel. Price of crude oil hits 13-months low as coronavirus continues to spread outside of China, spurring fears for a global economic slowdown that could jeopardize oil demand significantly. On the other hand, gold price rose 0.62% to $1,649.84 a troy ounce due to risk aversion in the 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 |
| 21.30 | USD – Core Durable Goods Orders (MoM) (Jan) | -0.1% | 0.2% | – |
| 21.30 | USD – GDP (QoQ) (Q4) | 2.1% | 2.1% | – |
| 23.00 | USD – Pending Home Sales (MoM) (Jan) | -4.9% | 2.2% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior breakout below the previous support level at 98.95. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 98.25.
Resistance level: 98.95, 99.80
Support level: 98.25, 97.55
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.2905. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2945, 1.2980
Support level: 1.2905, 1.2865
EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level at 1.0915. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.0915, 1.1005
Support level: 1.0780, 1.0655
USDJPY, Daily: USDJPY was traded lower while currently testing the support level at 110.15. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 112.25, 113.55
Support level: 110.15, 108.35
AUDUSD, Daily: AUDUSD was traded lower following prior retracement from the resistance level at 0.6720. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6480.
Resistance level: 0.6720, 0.6915
Support level: 0.6480, 0.6285
NZDUSD, Daily: NZDUSD was traded lower while currently testing the support level at 0.6285. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6355, 0.6420
Support level: 0.6285, 0.6240
USDCAD, Daily: USDCAD was traded higher following prior breakout above the resistance level at 1.3305. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.3410.
Resistance level: 1.3410, 1.3460
Support level: 1.3305, 1.3215
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 0.9750. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9710.
Resistance level: 0.9750, 0.9790
Support level: 0.9710, 0.9675
CrudeOIL, Daily: Crude oil price was traded lower following prior breakout below the previous support level at 49.75. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 45.60.
Resistance level: 49.75, 55.55
Support level: 45.60, 42.35
GOLD_, Daiy: Gold price was traded lower following prior retracement from the resistance level at 1674.70. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 1561.80.
Resistance level: 1674.70, 1764.20
Support level: 1561.80, 1449.30