29 January 2020 Afternoon Session Analysis
Pound dip while market awaits for BoE interest rate decision.
Among all the major currencies market, pound sterling fall tremendously over the past month as market participants forecast the unfolding monetary policy will be twisted in the upcoming Bank of England’s meeting. Prior to now, UK economy has been tampered significantly by the unsolved Brexit issue. Although Boris Johnson latest withdrawal bill has passed all the hurdles and successfully get the royal assent from The Queen, however investors are still seeing that UK might not be able to achieve a mutual consent with EU before the end of transition period. An exit bill without agreement may trigger huge sell off pressure on pound market as hard Brexit will definitely cool down the UK long term economy growth. Moreover, recent report which showed UK inflation rate has dropped to 1.3%, down from 1.5% in previous month also cemented the investors views toward UK central bank may further loosen their monetary policy, introducing more stimulus or adjusting the interest rate downward. As of writing, the pair of GBP/USD notched down 0.09% to 1.3015.
In the commodities market, crude oil price appreciates by 0.30% to $54.10 per barrel as markets believe OPEC and its allies will further extend its oil production cut before the end of March. Besides, trade tensions eased also further supporting this black commodity from falling while market are still awaiting for more progress in trade talk between US and China. On the other hand, gold price inched down 0.04% to $1,565.20 a troy ounce as US dollar strengthen.
Today’s Holiday Market Close
Time Market Event
All Day China Spring Festival
Today’s Highlight Events
Time Market Event
03:00 USD FOMC Statement (30th)
03:30 USD FOMC Press Conference (30th)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | EUR – GfK German Consumer Climate (Feb) | 9.6 | 9.6 | – |
| 23:00 | USD – Pending Home Sales (MoM) (Dec) | 1.2% | 0.5% | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | -0.405M | 0.482M | – |
| 03:00 (30th) | USD – Fed Interest Rate Decision | 1.75% | 1.75% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 97.70. MACD which illustrate bullish bias momentum suggest the index to extend its gains toward the next resistance level at 98.20.
Resistance level: 98.20, 98.80
Support level: 97.70, 97.25
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support of 1.2965. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term.
Resistance level: 1.3035, 1.3100
Support level: 1.2965, 1.2895
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.1000. MACD which has formed bullish signal suggests the pair to be traded higher in short-term.
Resistance level: 1.1035, 1.1075
Support level: 1.1000, 1.0960
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 109.25. MACD which illustrate upward momentum suggests the pair to extend its gains after it successfully breakout above the resistance level at 109.25.
Resistance level: 109.25, 109.65
Support level: 108.85, 108.00
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.6770. MACD which illustrate diminished downward momentum suggests the pair to extend its gains after it successfully breakout above the resistance level at 0.6770.
Resistance level: 0.6770, 0.6805
Support level: 0.6750, 0.6710
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.6535. MACD which illustrate diminished downward momentum suggests the pair to extend its gains after it successfully breakout above the resistance level at 0.6535.
Resistance level: 0.6535, 0.6570
Support level: 0.6490, 0.6460
USDCAD, H4: USDCAD was traded lower following prior retrace from its higher level. MACD which begin to form bearish signal suggests the pair to extend its losses toward the support level at 1.3145.
Resistance level: 1.3210, 1.3265
Support level: 1.3145, 1.3085
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9720. MACD which illustrate upward momentum suggests the pair to extend its gains toward the resistance level at 0.9770.
Resistance level: 0.9770, 0.9810
Support level: 0.9720, 0.9690
CrudeOIL, H1: Crude oil price was traded higher following prior breakout above the previous resistance level at 53.90. MACD which illustrate bullish signal suggests its price to be traded higher toward the resistance level at 55.25.
Resistance level: 55.25, 56.35
Support level: 53.90, 52.20
GOLD_, H1: Gold price was traded lower following prior breakout below the previous support level at 1572.10. MACD which illustrate bearish signal suggests this commodity to extend its losses toward the support level at 1561.85.
Resistance level: 1572.10, 1585.25
Support level: 1561.85, 1551.10