25 July 2018 Daily Analysis
Dollar skids while GDP in tow.
Greenback halts its bullish ascend on yesterday amid mixed signals portrayed by the recent release of economic from the region. The dollar index depreciates by 0.06%, last quoted around 94.33 as of writing. According to Market, US Manufacturing PMI expands further during the month of July, attaining a reading of 55.5 versus forecast for a decline to 55.1 However, US Services PMI – one of the main contribution to the American’s economy fell marginally short of forecast with only 56.2 versus expectation of 56.5. Overall, losses on the greenback was limited as the mixed data failed to derail investor’s speculation for a strong economic growth during the second quarter. On the other hand, pair of GBP/USD ticked up 0.03% to $1.3148 during Asian session. Pound sterling recovered slightly on yesterday after British Prime Minister Theresa May announced that she will lead Brexit negotiation with the European Union. The announcement has increased market expectation that United Kingdom may reach a desirable Brexit deal after months of impasses in both Britain’s Parliament and European Union.
Over to the commodities market, crude oil price tumbled 0.09% to $69.89 per barrel despite positive inventory data from American Petroleum Institute as investors weigh the possibility of a crude demand slowdown due to ongoing trade war between US and China. On the other hand, gold price pared its losses by 0.08% to $1,225.49 a troy ounce amid recent weakness of the greenback.
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 |
| 09:30 | AUD – CPI (QoQ) (Q2) | 0.4% | 0.5% | – |
| 16:00 | EUR – German Ifo Business Climate Index | 101.8 | 101.6 | – |
| 16:30 | GBP – Gross Mortgage Approvals | 39.2K | 39.0K | – |
| 22:00 | USD – New Home Sales (Jun) | 689K | 670K | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 5.836M | -2.331M | – |
GBPUSD
GBPUSD, H4: GBPUSD extended gains following prior rebound and a close above 1.3130. Although both MA line and MACD illustrate bullish signal, a breakout from the downward trendline is required to obtain further clarification with regards to the upside bias.
Resistance level: 1.3180, 1.3270
Support level: 1.3130, 1.3070
EURUSD
EURUSD, H1: EURUSD remains traded within a narrowing triangle following recent rebound from the lower level. Due to the lack of signal from price action and MACD histogram, it is suggested to wait for a breakout from either side of the triangle before entering the market.
Resistance level: 1.1710, 1.1750
Support level: 1.1675, 1.1640
USDJPY
USDJPY, H1: USDJPY remains traded within a narrowing triangle while currently testing near the upper level. Although MACD has formed a bullish crossover which suggests upside signal, a break above the narrowing triangle is required to obtain further clarification.
Resistance level: 111.95, 112.20
Support level: 111.25, 110.70
CrudeOIL
CrudeOIL, H1: Crude oil price was traded higher following prior re-entry into the ascending channel. However, diminishing upward momentum from the MACD may suggests the commodity price to be traded lower in short-term as technical correction.
Resistance level: 69.30, 70.00
Support level: 68.40, 67.90
GOLD
GOLD_, H1: Gold price remains traded within a narrowing triangle while currently testing at the top level. Due to the lack of signal from price action and MACD, it is suggested to wait for further indication before entering the market.
Resistance level: 1226.50, 1233.70
Support level: 1222.00, 1216.00