19 November 2018 Morning Session Analysis
Clarida dovishness knocks down US dollar.
US dollar depreciates sharply against other major currencies last Friday following dovish remarks from Federal Reserve Vice Chairman Richard Clarida. As of writing, the dollar index was down 0.05% to 96.42 during early Asian trading session. In an interview with the CNBC, Clarida expressed that the Fed is getting closer to their neutral rate and being “neutral” in terms of monetary policy is more “appropriate”. His comments were seen as dovish as it indicates that the Fed may pause its plans to hike interest rates sooner than expected, dialing down market speculation for further gradual tightening in the long-run. Furthermore, losses on the greenback was worsened following the release of bearish economic data last from the United States. For the month of October, industrial production, a measure of output at factories, mines and utilities rose only 0.1%, missing economist forecast for a rise of 0.2%. On the other hand, pound sterling rose 0.02% to 1.2833 against the US dollar. Traders piled back into the currency after no additional ministers had resigned from UK Prime Minister Theresa May’s government as she prepares to seal her Brexit draft deal with parliament and could face yet another leadership challenge.
In the commodities market, crude oil price rose 0.55% to $57.10 per barrel after OPEC officials continues to signal for further production cut in the 2019 to tighten supply and prop up the commodity’s price. Similarly, gold price tacks up 0.08% to $1,222.62 a troy ounce following weaker greenback and rising risks in the financial market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:45 USD FOMC Member Williams Speaks
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded flat while currently testing near the support of 96.20. MACD which illustrate diminishing downward momentum suggests the index to be traded higher in short-term as technical correction.
Resistance level: 96.60, 97.00
Support level: 96.20, 95.95
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the lower levels. MACD which begins to form a golden cross signal suggests the pair to be traded higher, towards the direction of 1.2895 in the mid-term.
Resistance level: 1.2895, 1.2955
Support level: 1.2805, 1.2690
EURUSD, H1: EURUSD was traded lower following prior retracement from the higher levels. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1445, 1.1485
Support level: 1.1385, 1.1330
USDJPY, H4: USDJPY was traded lower following prior breakout from multiple support levels. MACD which illustrate persistent bearish signal suggests the pair to extend its losses, towards the direction of 112.60.
Resistance level: 112.95, 113.20
Support level: 112.60, 112.10
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the higher levels. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7340, 0.7420
Support level: 0.7265, 0.7170
NZDUSD, H1: NZDUSD was traded lower following prior retracement from the higher levels. MACD which begins to form a death cross signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6910, 0.6970
Support level: 0.6855, 0.6795
USDCAD, H4: USDCAD oscillates while currently testing near the upward trendline. MACD which shows diminishing downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3155, 1.3210
Support level: 1.3115, 1.3080
USDCHF, H1: USDCHF was traded flat and currently testing near the support level of 0.9990. MACD which illustrate diminishing downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.0025, 1.0055
Support level: 0.9990, 0.9960
CrudeOIL, H4: Crude oil price was traded higher while currently testing near the downward trendline. MACD which illustrate bullish signal suggests the commodity price to extend its gains following a successful breakout from the trendline.
Resistance level: 59.45, 62.00
Support level: 57.00, 55.35
GOLD_, H1: Gold price was traded higher following prior breakout from the resistance level of 1215.95. However, MACD which illustrate the formation of death cross may suggests the commodity price to be traded lower in short-term as technical correction.
Resistance level: 1228.00, 1237.25
Support level: 1215.95, 1206.00