12 April 2018 Daily Analysis
Is Dollar capable to continue its gains post-FOMC?
Dollar index was traded higher against its major peers by 0.32% to 89.14 as of writing post-FOMC meeting minutes. Despite inflation data pointing to a faster pace of inflation, dollar gains remained under pressure due to ongoing US-Syria geopolitical uncertainty. Overnight, all FOMC members have expressed their supportive votes to increase interest rates gradually up to three times following US core annualized inflation that has increased in lined with market expectation by 0.3% to 2.1% in the month of March, surpassing their 2% target. However, the Greenback’s bullish momentum was rather limited following heightened geopolitical tensions when President Trump said to Moscow to “get ready” for an airstrike on Syria. On the contrary, EUR/USD rose 0.22% to $1.2370 following an optimistic statement by the European Central Bank (ECB)’S president Mario Draghi that inflation in the European zone would hit the central bank’s 2% target this year.
In the commodities market, crude oil price surged by 2.0% to $66.78 per barrel following investors’ concerns over the outlook of U.S. military intervention in Syria which could lead to supply disruptions in the Middle East. Otherwise, gold price retraced by 0.33% to $1351.21 a troy ounce following the wake up of dollar-bull post FOMC.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:20 CrudeOIL OPEC Monthly Report
19:30 EUR ECB Publishes Account of Monetary Policy Meeting
03:00 (Fri) GBP BoE Gov Carney Speaks
05:00 (Fri) USD FOMC Member Kashkari Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:45 | EUR – French CPI (MoM) (Mar) | 1.0% | 1.0% | – |
| 17:00 | EUR – Industrial Production (MoM) (Mar) | -1.0% | 0.1% | – |
| 20:30 | USD – Import Price Index (MoM) (Mar) | 0.4% | 0.1% | – |
| 20:30 | USD – Initial Jobless Claims | 242K | 231K | – |
| 20:30 | CAD – New Housing Price Index (MoM) (Feb) | 0.0% | 0.1% | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded lower following its failure to break resistance level at 1.4190. Death-cross as displayed by MACD signal line would suggest the pair to undergo short-term technical correction to trade lower towards the support level at 1.4160.
Resistance level: 1.4190, 1.4240
Support level: 1.4160, 1.4120
EURUSD
EURUSD, H4: EURUSD was traded lower prior retracement from resistance level at 1.2380. MACD histogram that displays diminishing bullish momentum would suggest the pair to undergo short-term technical correction to trade lower before extending its bullish bias.
Resistance level: 1.2380, 1.2400
Support level: 1.2350, 1.2330
USDJPY
USDJPY, H1: USDJPY was traded higher after rebound from support level at 106.70. The pair is currently testing resistance level at 106.80. MACD signal line that shows a golden-cross would suggest the pair to continue its bullish momentum if candlestick successfully closes above the said resistance level.
Resistance level: 106.80, 107.00
Support level: 106.70, 106.40
CrudeOIL
CrudeOIL, H4: Crude oil price was traded higher after breaking resistance level at 66.60. However, MACD histogram that portrays diminishing bullish momentum would suggest the commodity price to undergo short-term losses to retest its previous high.
Resistance level: 67.40, 69.50
Support level: 66.60, 65.30
GOLD
GOLD_, H4: Gold price was traded lower prior breaking support level at 1354.90. Formation of dark cloud cover candlestick pattern and MACD that displays ongoing bearish momentum would suggest the safe-haven asset price to extend its losses if breakout at the next support level 1350.20 is successful.
Resistance level: 1354.90, 1360.20
Support level: 1350.20, 1347.30