18 May 2018 Daily Analysis
Solid growth of U.S. bond yields supported Greenback.
Dollar index was traded flat against its major peers near its 5-month high, last stood at 93.43 following the release of mixed economic data in the region. Overnight, the U.S. Department of Labor reported an increase in initial jobless claims by 10,000 to a seasonally adjusted 222,000 last week, missing the forecast reading of 215,000. Nonetheless, losses of the Greenback was limited after Philadelphia Fed Manufacturing Index reflected an actual reading of 34.4 versus the expected reading of 21.0. All in all, Greenback remains supported above its 93.00 key level as U.S. bond yields rose to its highest level since 2011 at 3.122% yesterday. On the contrary, EUR/USD fell 0.01% to $1.1804 following ongoing concerns of market participants over the formation of a new governing coalition in Italy that could provoke political uncertainty in the region.
In the commodities market, crude oil price rose 0.14% to $71.70 per barrel following an optimistic market sentiment towards U.S. sanctions on Iran’s oil exports enough to suppress crude supplies in global market. Otherwise, gold price fell by 0.13% to $1288.51 a troy ounce following rising U.S. treasury yields continued to sap the appeal of the precious metal.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
15:00 USD FOMC Member Mester Speaks
21:15 USD FOMC Member Brainard Speaks
21:15 USD FOMC Member Kaplan Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 07:30 | JPY – National Core CPI (YoY) (Apr) | 0.9% | 0.8% | 0.7% |
| 14:00 | EUR – German PPI (MoM) (Apr) | 0.1% | 0.3% | – |
| 20:30 | CAD – Core CPI (MoM) (Apr) | 0.2% | – | – |
| 20:30 | CAD – Core Retail Sales (MoM) (Apr) | 0.0% | 0.5% | – |
| 01:00 | CrudeOIL – US Baker Hughes Oil Rig Count | 844 | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded within consolidation with absence of obvious momentum from candlestick pattern formation and MACD. Thus it is suggested to wait for confirmation breakout to grasp the next direction of the pair in the near future.
Resistance level: 1.3550, 1.3610
Support level: 1.3450, 1.3330
EURUSD
EURUSD, H4: EURUSD was traded higher prior rebound from support level at 1.1780. Golden-cross as displayed by MACD signal line would suggest the pair to extend its gains towards the resistance level at 1.1830.
Resistance level: 1.1830, 1.1920
Support level: 1.1780, 1.1740
USDJPY
USDJPY, H4: USDJPY was traded higher prior breaking trend line of ascending wedge. MACD that displays ongoing bullish momentum would suggest the pair to extend its gains towards the resistance level at 111.00.
Resistance level: 111.00, 111.70
Support level: 110.40, 110.00
CrudeOIL
CrudeOIL, H4: Crude oil price was traded lower prior breaking support level at 71.70. Formation of engulfing candlestick pattern and death-cross as shown by MACD signal line would suggest the commodity price to extend its losses towards the trend line of ascending wedge.
Resistance level: 71.70, 72.20
Support level: 71.20, 70.60
GOLD
GOLD_, H1: Gold price was traded lower after breaking support level at 1290.00. Death-cross that is going to be formed by MACD signal line would suggest the safe-haven asset price to extend its losses towards the support level at 1285.90.
Resistance level: 1290.00, 1295.70
Support level: 1285.90, 1276.70