31 December 2020 Morning Session Analysis
Pound surged over the positive Covid-19 vaccine development.
The Pound Sterling surged following the announcement that the AstraZeneca Covid-19 vaccine had been approved by British regulator, which spurring hopes for the resolution of the Covid-19 crisis while dialled up the market optimism toward the economic progression in the United Kingdom. According to Reuters, the UK Medicine and Healthcare Products Regulatory Agency approved the use of the Covid-19 vaccine which developed by AstraZeneca and the University of Oxford yesterday. Such vaccines are selling at cheaper price while can be stored at normal refrigeration temperatures, which easing the challenge of mass distribution. According to latest statistics, the UK had registered a new daily record for Covid-19 infections on yesterday with more than 53,000 of Covid-19 infections while 900 people were killed by the virus on yesterday. In addition, Pound Sterling extend its gains following the UK and European Region had achieved consensus with regards of post-Brexit deal in the early in the week. Nonetheless, as for now investors would continue to scrutinize the latest updates with regards of the Covid-19 vaccine development in order to gauge the likelihood movement for the currency. As of writing, GBP/USD surged 0.03% to 1.3615.
In the commodities market, the crude oil price appreciated by 0.06% to $48.30 per barrel as of writing over the backdrop of the positive oil inventory data. According to Energy Information Administration (EIA), the U.S. Crude oil inventory had declined significantly from the previous reading of -0.562M to -6.065M, much better than the market forecast at -2.583M. On the other hand, the gold price surged 0.05% to $1893.35 per troy ounces as of writing amid weakening US Dollar.
Today’s Holiday Market Close
Time Market Event
All Day Switzerland New Year’s Day
All Day Japan Market Holiday
All Day Germany New Year’s Eve
All Day Italy New Year’s Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:30 | USD – Initial Jobless Claims | 803K | 835K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 90.20. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 89.00.
Resistance level: 90.20, 90.95
Support level: 89.00, 88.10
GBPUSD, Weekly: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3405. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3785.
Resistance level: 1.3785, 1.4185
Support level: 1.3405, 1.2785
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.2250. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2330, 1.2400
Support level: 1.2250, 1.2165
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 103.05. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 103.70, 104.70
Support level: 103.05, 102.30
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7690. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7690, 0.7765
Support level: 0.7625, 0.7510
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.7165. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7235, 0.7305
Support level: 0.7165, 0.7110
USDCAD, H1: USDCAD was traded lower while currently testing the support level at 1.2745. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2790, 1.2825
Support level: 1.2745, 1.2695
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.8810. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.8915, 0.8980
Support level: 0.8810, 0.8755
CrudeOIL, H1: Crude oil price was traded higher while currently testing the resistance level at 48.35. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 48.35, 48.95
Support level: 47.55, 47.10
GOLD_, H4: Gold price was traded higher while currently near the resistance level at 1899.50. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1899.50, 1931.40
Support level: 1860.80, 1825.85