08 January 2019 Morning Session Analysis
Dollar plunges amid poor ISM data.
Dollar index fell against a basket of six major currency pair amid the announcement of ISM Non-Manufacturing PMI data which measures the overall condition of the US economy excluding manufacturing sector. The data had an actual reading of 57.6, missing economists’ expectation of 59.6, indicating a weaker expansion while remaining above 50.0 which still indicates an expanding economy. Recent economy outlook for the US remained cloudy while being pressured by downbeat data and also concerns of future rate hike paused after Fed Chairman Jerome Powell stated that the Fed are ready to change policy swiftly according to the economical status of the country. Dollar index was down by 0.04% to 95.65 as of writing. In other news, pair of USD/CAD further its bearish momentum by 0.05% to 1.3295 after plunging to new lows amid pro Ivey PMI data. The data which generally measures the overall economic performance came in at 59.7, exceeding its expectation of 58.1 which led investors to sell the currency pair. As Canada represents one of the largest oil exporters, the hike in oil prices further supported the value of Canadian dollar.
For the commodities market, crude oil price surged by 0.60% to $48.80 while hitting higher levels. Recent sentiment towards the oil market turned positive supported by OPEC production cut taken into effect on 1st January last week. Furthermore, hopes on trade war easing between China and US also supported demand for oil as both countries meet up for trade negotiations this week. On the other hand, gold price fell by 0.26% to $1285.75 amid investors’ higher risk appetite.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 15:00 | EUR – German Industrial Production (MoM) (Nov) | -0.5% | 0.3% | – |
| 23:00 | USD – JOLTS Job Openings (Nov) | 7.079M | 7.170M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was higher following prior rebound from the support level at 95.20. MACD which illustrate diminishing bearish momentum suggest the index to extend its rebound toward the resistance level at 95.65.
Resistance level: 95.65, 96.00
Support level: 95.20, 94.60
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.2785. MACD which display diminishing bullish momentum suggest the pair to extend its retracement toward the support level at 1.2715.
Resistance level: 1.2785, 1.2855
Support level: 1.2715, 1.2600
EURUSD, H4: EURUSD was traded lower following prior retracement from resistance level 1.1480. MACD which display bearish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 1.1430.
Resistance level: 1.1480, 1.1515
Support level: 1.1430, 1.1395
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 108.55. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 109.30.
Resistance level: 109.30, 110.25
Support level: 108.55, 107.70
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7115. However, MACD which illustrate diminishing bullish momentum suggest the pair to undergo technical correction in short term toward the support level at 0.7115.
Resistance level: 0.7170, 0.7225
Support level: 0.7115, 0.7070
NZDUSD, H1: NZDUSD was traded higher following prior rebound from the support level 0.6740. MACD which display diminishing bearish momentum suggest the pair to extend its gains towards the resistance level 0.6785.
Resistance level: 0.6785, 0.6840
Support level: 0.6740, 0.6715
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3280. However, MACD which illustrate diminishing bearish momentum suggest the pair to undergo short term technical correction towards the resistance level at 1.3330.
Resistance level: 1.3330, 1.3415
Support level: 1.3280, 1.3175
USDCHF, H1: USDCHF was traded higher while currently testing the resistance level at 0.9810. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains after successfully breakout above the resistance level at 0.9810.
Resistance level: 0.9810, 0.9835
Support level: 0.9790, 0.9755
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 48.35. MACD which display diminishing bullish momentum suggest the commodity to extend its losses after successfully breakout below the support level at 48.35.
Resistance level: 49.75, 51.05
Support level: 48.35, 46.65
GOLD_, H1: Gold price was traded lower following prior retracement near the resistance level at 1289.70. MACD which display bearish momentum suggest gold to extend its losses toward the support level 1283.80.
Resistance level: 1289.70, 1296.95
Support level: 1283.80, 1277.10