19 July 2017 Daily Analysis
Greenback bruised as Trumponomics dawdle.
US dollar plunged to its weakest level in 11 months after the latest setback on Republicans effort to repeal and replace Obamacare. The dollar index mends some losses by 0.10% to 94.40 during Asian trading hours. “The reform momentum of Trump’s administration has yet received another blow,” said strategist at Morgan Stanley. “Clearly, anything that comes along at the moment just corroborates the market’s pessimism towards the dollar”. The inability to enact healthcare reform led to questions on Trump’s ability to enact further changes to American tax system in the near future, dampening prior optimism towards Trump’s economic agenda. Otherwise, pound sterling eases by 0.09% to $1.3030 amid yesterday’s weaker-than-expected inflation data. For the month of June, UK’s Consumer Price Index fell to 2.6%, missing economist target of 2.9% while dampening hopes for a rate hike by Bank of England in the near term.
Otherwise, crude oil price sheds 0.32% to $46.25 following a surprise build in US crude inventories. According to American Petroleum Institute, crude stockpiles were up 1.628 million barrels last week, missing expectation for a draw of 3.500 million barrels. On the other hand, gold price held steady near three-weeks high at $1,242.00 following reduced confidence in US President Donald Trump’s agenda.
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 Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Building Permits (Jun) | 1.168M | 1.200M | – |
| 20:30 | USD – Housing Starts (MoM) (Jun) | -5.5% | 5.8% | – |
| 20:30 | CAD – Manufacturing Sales (MoM) (May) | 1.1% | 0.8% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -7.564M | -3.214M | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level of 1.3050. Recent formation of death cross by both MA line suggests GBPUSD to extend its losses towards the target of support level at 1.3000.
Resistance level: 1.3050, 1.3085
Support level: 1.3000, 1.2965
EURUSD
EURUSD, H1: EURUSD was traded lower following prior retracement from previous high at 1.1580. Recent closure below the 20-MA line (red) suggest EURUSD to extend its retracement towards the target of support level at 1.1530.
Resistance level: 1.1555, 1.1580
Support level: 1.1530, 1.1500
USDJPY
USDJPY, H4: USDJPY was traded higher following prior rebound near the support level of 111.65. However, as both MA line continues to expand downwards while coupled with increasing downward momentum from MACD, USDJPY is expected to extend its losses towards the target of support level at 111.65.
Resistance level: 112.30, 113.15
Support level: 111.65, 111.00
CrudeOIL
CrudeOIL, H1: Crude oil price remains traded within an ascending triangle following prior rebound from the bottom level. A successful closure above the resistance level of 46.55 would suggest crude oil price to extend its upward momentum towards the next target at 46.90.
Resistance level: 46.55, 46.90, 47.20
Support level: 46.10, 45.65
GOLD
GOLD_, H4: Gold price has extended its gains following previous formation of golden cross by both moving average line. As both lines continue to expand upwards, a rebound from the support level of 1240.20 would suggest gold price continue its prior uptrend.
Resistance level: 1246.75, 1253.00
Support level: 1240.20, 1230.00