29 July 2019 Afternoon Session Analysis
Sterling slumps over hard Brexit fears.
Pound sterling remains traded in a downward trend due to ongoing Brexit risks and bleak economic development in the United Kingdom. Recent economic data from the region failed to provide any bullish support on the sterling as the market sees diminishing activity in terms of manufacturing, construction and services sector. Likewise, recent speech from new UK Prime Minister Boris Johnson falls within expectation as he reiterates to initiate Brexit by 31st October 2019. Boris whom is a hard Brexit advocate spooks off traders from the UK market as it may jeopardize their economy further. In the case of hard Brexit and the lack of any special arrangement, UK and EU will fallback to trade policies as per World Trade Organization and may spike up the tariffs rate for both UK and EU. For the time being, investors will keep a close eye upon UK’s economy and Brexit development in order to receive further market signals. As of writing, pair of GBP/USD slumped 0.07% to 1.2372. On the other hand, the dollar index depreciates by 0.06% to 97.65 this morning. US dollar retraces from its prior high levels while market participants waits for the imminent release of Federal Reserve interest rate decision whom is expected to cut their benchmark rate by 25 basis points to 2.25%.
In terms of commodities market, crude oil price slipped 0.18% to $55.95 per barrel. Oil price received some bearish pressure after an emergency meeting was held with Iran to discuss with regards to nuclear arrangement. Diminishing risks in the Middle East forces traders to cut their bullish bets on oil futures which may increase in price due to shortage of supply if a war broke out in the region. On the other hand, gold price rose 0.26% to $1,422.20 a troy ounce due to weaker US dollar.
Today’s Holiday Market Close
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Today’s Highlight Events
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Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher following prior rebound from the 20 moving average line (Red). MACD which illustrate diminishing bearish momentum signal suggest the dollar to extend its gains toward the resistance level at 98.00.
Resistance level: 98.00, 98.40
Support level: 97.50, 97.10
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.2400. MACD which display bearish bias momentum suggest the pair to extend its losses toward the support level at 1.2350.
Resistance level: 1.2400, 1.2445
Support level: 1.2350, 1.2300
EURUSD, H1: EURUSD was traded lower following prior retracement from the 50 moving average line (Blue). MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.1125.
Resistance level: 1.1170, 1.1200
Support level: 1.1125, 1.1085
USDJPY, H4: USDJPY was traded lower while currently testing the 20 moving average line (Red). MACD which illustrate diminishing bullish momentum and the formation of death cross suggest the pair to extend its losses after successfully breakout below the 20 moving average line (Red).
Resistance level: 108.70, 109.20
Support level: 108.25, 107.75
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.6905. MACD which display bearish bias momentum suggest the pair to extend its losses after successfully breakout below the support level at 0.6905.
Resistance level: 0.6935, 0.6960
Support level: 0.6905, 0.6865
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6660. MACD which display bearish momentum suggest the pair to extend its losses toward the support level at 0.6600.
Resistance level: 0.6660, 0.6725
Support level: 0.6600, 0.6570
USDCAD, H1: USDCAD was traded higher following prior rebound from the 50 moving average line (Blue). MACD which display diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.3220.
Resistance level: 1.3220, 1.3275
Support level: 1.3140, 1.3095
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.8945. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.9880.
Resistance level: 0.9945, 1.0005
Support level: 0.9880, 0.9840
CrudeOIL, H4: Crude oil price was traded flat within sideway channel. Due to lack of signal from the MACD, it is suggests to wait for further confirmation such as breakout below or rebound signal appeared before entering the market.
Resistance level: 57.15, 57.85
Support level: 55.90, 54.95
GOLD_, H4: Gold price was traded higher while currently testing the 20 moving average (Red) and 50 moving average line (Blue). MACD which illustrate diminishing bearish momentum and golden cross signal suggest the commodity to extend its gains after successfully breakout above both moving average lines.
Resistance level: 1424.05, 1436.35
Support level: 1415.40, 1403.00