17 May 2021 Morning Session Analysis
US dollar depreciates as economic data fails to deliver.
US dollar was traded lower against other major currencies on Monday following the release of bearish economic data last Friday. As of writing, the dollar index was down 0.47% to 90.23. According to US Census Bureau, Retail Sales for the month of April came in at 0.0%, less than economist’ forecast of 1.0%. Similarly, Core Retail Sales notched down by -0.8%, significantly lower than forecast of 0.7%. Both data has dialed down market expectation for higher inflation in the near-term due to recently subdued consumer spending. Likewise, both data has cemented Federal Reserve view to monitor US economic recovery and would only act to tighten monetary policy when all aspect of it stabilizes. On the other hand, pair of GBP/USD rose 0.33% to 1.4096. Pound sterling received bullish support as UK announces to ease social distancing SOPs while reopening all economic sector starting from today.
In the commodities market, crude oil price rose 2.66% to $65.47 per barrel. Oil prices received bullish support following heightened geopolitical tension in between Israel and Gaza which may disrupt oil supplies in the region. On the other hand, gold price rose 1.01% to $1,844.25 a troy ounce due to higher risk aversion in the market.
Today’s Holiday Market Close
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Today’s Highlight Events
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 90.75. MACD which illustrated formation of bearish momentum suggest the index to extend its losses after breaking the support level at 90.20.
Resistance level: 90.45, 90.75
Support level: 90.20, 90.00
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.4100. MACD which illustrated the formation of bullish momentum suggest the pair to extend its gains after a successful breakout above the resistance level.
Resistance level: 1.4100, 1.4180
Support level: 1.4000, 1.3940
EURUSD, H1: EURUSD was traded lower following prior retracement from the resistance level at 1.2150. MACD which illustrated the formation of bearish momentum suggest the pair to extend its losses in short-term.
Resistance level: 1.2150, 1.2170
Support level: 1.2125, 1.2100
USDJPY, H1: USDJPY was traded higher while currently testing the resistance level at 109.45. MACD which illustrated bullish momentum suggest the pair to be traded higher in short-term after breaking the resistance level.
Resistance level: 109.45, 109.70
Support level: 109.25, 109.00
AUDUSD, H4: AUDUSD was traded lower following prior retracement from its previous high. MACD which illustrated diminished upward momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7805, 0.7850
Support level: 0.7755, 0.7700
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.7240. MACD which illustrated diminished bullish momentum suggest the pair to extend its losses in short-term as technical correction.
Resistance level: 0.7240, 0.7280
Support level: 0.7200, 0.7145
USDCAD, H1: USDCAD was traded higher while currently testing the resistance level at 1.2120. MACD which illustrated diminishing bullish momentum suggest the pair to be traded higher after breaking the resistance level.
Resistance level: 1.2120, 1.2160
Support level: 1.2080, 1.2045
USDCHF, H1: USDCHF was traded higher following a rebound from the lower level. MACD which shows the formation of bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9025, 0.9045
Support level: 0.9012, 0.8985
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 63.25. MACD which illustrated bullish momentum suggest the commodity to extend its gains after breaking the resistance level at 65.50.
Resistance level: 65.50, 66.50
Support level: 64.30, 63.25
GOLD_, Daily: Gold price was traded higher while currently testing near the resistance level at 1855.20. MACD which illustrate bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1855.20, 1901.35
Support level: 1822.75, 1790.30