26 June 2018 Daily Analysis
Dollar relinquished over tit for tat tariff battle.
US dollar extended its back foot on Monday following higher demand for safe-haven assets over fears of an escalating trade war between the United States and its peers which could dampened global economic growth. The dollar index was quoted down 0.24% while last seen around 93.89 during Asian trading session. According to Wall Street Journal, White House is allegedly planning to block firms with at least 25% of Chinese ownership from investing in US technology firms and bar any technology exports to Beijing. The report prompted vast risk aversion, aggravating further bearish pressure on the greenback. Protectionism arise from the United States added more concern over the latest flare of global trade saga after US President Donald Trump threatened to impose 20% tariff on car imports from the EU after its counterpart imposes tariff upon US imports in response to White House’ steel and aluminum tariff enactment. Against other major currencies, pair of EUR/USD rose 0.10% to $1.1704 while USD/JPY extended its losses by 0.14% to 109.62.
In the commodities market, crude oil price settled down 0.12% to $68.25 per barrel as traders continue to asses OPEC’s decision to lift their output that may slowdown global rebalancing of supply and demand. Otherwise, gold price ticked up 0.04% to $1,265.99 a troy ounce albeit remained under pressure following higher prospect for interest rate hike from the Federal Reserve in the near future.
Today’s Holiday Market Close
Time Market Events
N/A
Today’s Highlight Events
Time Market Events
01:00 USD FOMC Member Bostic Speaks
01:45 USD FOMC Member Kaplan Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 22:00 | USD – CB Consumer Confidence (Jun) | 128.0 | 127.6 | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | -3.016M | – | – |
GBPUSD
GBPUSD, H4: GBPUSD extended its gains following prior rebound from the support level of 1.3235. Both MA line which continues to narrow upward suggests the pair to advance further up after breaking the strong resistance level at 1.3290.
Resistance level: 1.3290, 1.3345
Support level: 1.3235, 1.3185
EURUSD
EURUSD, H4: EURUSD extended gains following prior breakout from the top level of sideways channel. MACD histogram which continues to illustrate persistent upward signal suggests further bullish bias. Thus, a close above the target at 1.1710 would provide further validation.
Resistance level: 1.1710, 1.1820
Support level: 1.1645, 1.1550
USDJPY
USDJPY, H1: USDJPY remains traded within a descending channel while currently testing at the lower level. MACD histogram which illustrate diminished upward momentum may suggest the pair to extend its losses after closing below the support level of 109.50.
Resistance level: 109.80, 110.25
Support level: 109.50, 109.20
CrudeOIL
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the strong resistance level of 69.50. However, both MA line which continues to expand upwards after the formation of golden cross suggests its price to advance further up and retest at the target of 69.50.
Resistance level: 69.50, 71.15
Support level: 67.40, 65.75
GOLD
GOLD_, H1: Gold price remains traded within a narrowing triangle while currently testing at the bottom level. MACD histogram which illustrate diminished downward momentum suggests the pair to extend its gains in short-term after closing above the 20-MA line (red). Long-term trend direction can only be determined following a successful breakout from either side of the triangle.
Resistance level: 1270.00, 1275.80
Support level: 1264.00, 1260.00