10 November 2017 Daily Analysis
Tax reform delays bullish greenback.
Dollar index rebounded from its weekly losses earlier during the Asian trading session following investors’ disappointment with delayed expected corporate tax cuts by U.S. Senate Republicans. Greenback was traded flat against a trade-weighted basket of major currencies, rose 0.07% to 94.51 as of writing. Although the corporate tax rate cut was proposed with a reduction from 35 percent to 20 percent, its implementation was signaled to be delayed by the Senate until 2019. A delay in tax cuts would further diminish Federal Reserve’s possibility to have more frequent rate hikes as the reformation was deemed to boost higher growth rate and Trumpflation. On the other hand, USD/CAD sheds further by 0.04% to $1.2679 as the commodity-sensitive Loonie is receiving an additional boost from crude oil prices which is still hovering near two-years high; adding over to the backdrop of disappointing tax reform bill that has pressurized the greenback.
In the commodities market, crude oil price remained stable at around $57.00 as overall optimism towards OPEC in extending their production cut plans was balanced with recent bearish uptick in US crude inventories. Likewise, gold price depreciates by 11 cents to $1285.71 a troy ounce amid dollar’s recent recovery.
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 |
| 17:30 | GBP – Manufacturing Production (MoM) (Sep) | 0.4% | 0.3% | – |
| 17:30 | GBP – Trade Balance (Sep) | -14.25B | -12.80B | – |
| 23:00 | USD – Michigan Consumer Sentiment (Nov) | 100.7 | 101.0 | – |
| 02:00 | CrudeOIL – US Baker Hughes Oil Rig Count | 729 | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded higher prior rebound from support level at 1.3110. Hidden positive divergence as formed by MACD histogram suggest the pair to trade higher prior breaking the trend line of descending triangle.
Resistance level: 1.3215, 1.3320
Support level: 1.3110, 1.3045
EURUSD
EURUSD, H4: EURUSD was traded higher after breaking resistance level at 1.1615. Formation of pin bar and positive divergence by MACD signal line suggest the pair to extend higher toward the next resistance level at 1.1670.
Resistance level: 1.1670, 1.1745
Support level: 1.1615, 1.1570
USDJPY
USDJPY, H1: USDJPY was traded within descending channel and the pair was traded higher prior rebound from support level at 113.35. Formation of positive divergence by MACD histogram suggest the pair to extend its gains toward the resistance level at 113.70.
Resistance level: 113.70, 114.20
Support level: 113.35, 112.95
CrudeOIL
CrudeOIL, H1: Crude oil price was traded in consolidation with absence of obvious signal from both candlestick pattern and MACD signal line. It is suggested to wait for breakout to occur for clearer indication of the price movement for the commodity.
Resistance level: 57.40, 57.95
Support level: 56.35, 55.65
GOLD
GOLD_, H1: Gold price was traded within rising wedge and it was traded lower prior retracement from resistance level at 1288.05. A breakout is required for future indication of price movement for the commodity following absence of obvious signal from both candlestick pattern and MACD histogram.
Resistance level: 1288.05, 1300.60
Support level: 1280.55, 1273.75