27 December 2019 Afternoon Session Analysis
Pound dived amid heightening of Brexit’s uncertainty.
Sterling pound slumped among major currencies amid the future path of Brexit remain unclear, possibility of hard Brexit has been lifted up recently. After Christmas holiday break, market participants has returned back into FX market, worries over a no deal Brexit continue to weigh on the single currency pound. At the moment, pound market sentiment turned sour as UK Prime Minister Boris Johnson was set to use his majority to take a hardline stance in talks with the European Union. After winning the general election with majority seat, Boris Johnson immediately mark his promise by writing into the law that UK will leave the EU in year 2020 and no any extension of transition period in the future. However, markets are seemingly lack of confidence with the decision of Boris Johnson as they doubt that UK might unable to reach a deal with EU in term of trade deal, security and law enforcement within the limited time. As of writing, the pair of GBP/USD inched down 0.04% to 1.2985. On the other hand, the pair of USD/JPY slumped 0.12% to 109.50 amid upbeat economic data from Japan triggered huge buy in pressure on Japanese Yen. According to the announcement of data, Japan Tokyo Core CPI and Industrial Production data came in at 0.8% and -0.9%, stronger than economist forecast of 0.6% and -1.4%, while showing a little bit of improvement in Japan economy condition after loosening their monetary policy for an extended period.
In the commodities market, crude oil price spiked by 0.13% to $61.80 per barrel amid easing of trade tension between two largest economy countries and huge crude oil’s draw which shown in API inventories data continue to weigh on this black commodity. Besides, gold price inched up 0.17% to $1513.80 a troy ounce amid tax loss harvesting practice pushed up the demand of gold.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 23:30 | CrudeOil – Crude Oil inventories | -1.085M | – | — |
| 02:00
28th |
CrudeOIL – U.S. Baker Hughes Oil Rig Count | 685 | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior retracement from the resistance level at 97.25. MACD which illustrated diminishing bullish momentum suggest the index to be traded lower toward the support level at 96.85.
Resistance level: 97.25, 97.70
Support level: 96.85, 96.25
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level at 1.2965. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.3035.
Resistance level: 1.3035, 1.3085
Support level: 1.2965, 1.2895
EURUSD, Daily: EURUSD was traded higher following prior rebound from the support level at 1.1075. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.1170.
Resistance level: 1.1170, 1.1240
Support level: 1.1075, 1.1005
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 109.70. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 109.25.
Resistance level: 109.70, 110.25
Support level: 109.25, 108.95
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6925. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6965.
Resistance level: 0.6965, 0.7005
Support level: 0.6925, 0.6880
NZDUSD, H1: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6665. However, MACD which illustrated diminishing bullish momentum suggest the pair to undergo short term technical correction toward the support level at 0.6665.
Resistance level: 0.6695, 0.6725
Support level: 0.6665, 0.6640
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.3145. MACD which illustrated bearish momentum suggest the pair to extend its losses toward the support level at 1.3085.
Resistance level: 1.3145, 1.3210
Support level: 1.3085, 1.3020
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9810. Due to lack of signal from MACD, it is suggested to wait for further signal appear before entering into the market.
Resistance level: 0.9810, 0.9845
Support level: 0.9770, 0.9725
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 60.80. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward the resistance level at 62.35.
Resistance level: 62.35, 63.05
Support level: 60.80, 59.70
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1513.50. However, MACD which illustrated diminishing bullish momentum suggest the commodity to undergo short term technical correction toward the support level at 1501.95.
Resistance level: 1513.55, 1530.05
Support level: 1501.95, 1490.35