22 May 2018 Daily Analysis
Dollar-bull smitten as Euro rebounds sharply.
US dollar eased from its five-months peak as bullish support falters due to strong recovery of Euro from its multi-months low. The dollar index which measures its strength against a basket of six major currencies was down 0.15% to 93.40 as of writing. During yesterday’s Asian session, the greenback received some bullish support following US Treasury Steven Mnuchin call for a pause on the US-China trade war, triggering a short-term wave of buybacks on the dollar against the safe-haven Japanese yen. However, the dollar turned bearish as we entered into the North American session after investors returned to the Euro equity market which received a large selloff due to higher political risk which stemmed from Italy. The formation of coalition government between Five-Star Movement and League that proposes large sum of fiscal spending agitated investors which may jeopardize Italy’s sovereign credit rating. Pairing of EUR/USD was traded flat at around $1.1791 during Asian trading session.
Peering into the commodities market, crude oil price was down 0.19% to $72.42 per barrel as investors begin to cash in their profit after peaking at fresh three-and-a-half-years high of $72.65 on yesterday. The bullish momentum was evoked after last weekend’s election in Venezuela is viewed as illegitimate while raising the prospect of US sanctions to be imposed on the country’s oil export. Otherwise, gold price extended gains by 0.03% to $1,292.61 a troy ounce over the backdrop of a weaker dollar.
Today’s Holiday Market Close
Time Market Event
All Day HKD Hong Kong – The Birthday of the Buddha
Today’s Highlight Events
Time Market Event
16:15 GBP BoE Gov Carney Speaks
17:00 GBP Inflation Report Hearings
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 18:00 | GBP – CBI Industrial Trends Orders (May) | 4 | 2 | – |
| 20:30 | CAD – Wholesale Sales (MoM) (Mar) | -0.8% | 0.9% | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | 4.854M | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the psychological support of 1.3400. MACD histogram which illustrate diminishing downward momentum may suggests the pair to be traded higher in short-term as technical correction before extending its losses in tandem with the current major downward trendline.
Resistance level: 1.3505, 1.3600
Support level: 1.3400, 1.3245
EURUSD
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level of 1.1725. Recent formation of upward signal from the MACD histogram may suggest the pair to extend its gains in short-term after successfully breaking the resistance level at 1.1790. Otherwise, long-term trend direction is still skewed towards bearish.
Resistance level: 1.1790, 1.1870
Support level: 1.1725, 1.1665
USDJPY
USDJPY, H4: USDJPY was traded lower following prior retracement and closure below the threshold of 111.00. Recent formation of negative divergence signal from MACD histogram may suggest the pair to extend its losses after successfully closing below the 20-MA line (red).
Resistance level: 111.00, 111.65
Support level: 110.55, 109.90
CrudeOIL
CrudeOIL, Daily: Crude oil price extended its major bullish trending following prior rebound from the 20-MA line (red). Both MA line which continues to expand upwards suggests the commodity price to advance further up, towards the target of resistance level near 73.80.
Resistance level: 73.80, 77.75
Support level: 68.60, 66.10
GOLD
GOLD_, H4: Gold price re-entered into the sideways channel following prior rebound from the support level of 1282.50. Recent formation of upward signal from MACD histogram may suggests the commodity price to advance further up in short-term, towards the direction of resistance level near 1295.70.
Resistance level: 1295.70, 1301.90
Support level: 1287.50, 1282.50