07 January 2019 Morning Session Analysis
Dollar tumbled against mixed data.
Dollar index weakened against a basket of six major currency pair amid the announcement of mixed data last Friday. Greenback was continuing it’s upwards momentum while being supported by good Nonfarm Payrolls (NFP) data. The actual reading of 312K exceeded economist expectation of 178K. However, dollar gains were limited by poor Unemployment Rate data with an actual reading of 3.9% compared to 3.7%. Although the NFP data was good, unemployment rate in the US has worsen due to the slowdown in economic growth. Corporates and companies are forced to lay off their workers as the global economy goes into recession. Dollar index fell by 0.11% to 95.55 as of writing. In other news, pair of EUR/USD inched higher by 0.23% to 1.1420 amid dollar fall. During last Friday, the Euro Zone announced their CPI data which gave a reading of 1.6%, missing economists’ expectation of 1.8%. Poor data and increasing tensions of global economy slowdown gave expectations that the European Central Bank will remain their interest rate unchanged.
For the commodities market, crude oil price surged by 0.60% to $48.55 amid hopes of potential trade deal agreement between US and China after China’s commerce ministry said they would hold vice-ministerial trade talks with US counterparts in Beijing on the week of 7th January. Moreover, US Hughes Oil Rig Count provided a strong reading of 877 compared to 885, indicating lower drilling activity. Besides that, gold price increased by 0.33% to $1288.75 amid dollar fall.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 18:00 | EUR – Retail Sales (MoM) (Nov) | 0.3% | 0.2% | – |
| 23:00 | USD – ISM Non-Manufacturing PMI (Dec) | 60.7 | 59.6 | – |
| 23:00 | CAD – Ivey PMI (Dec) | 57.2 | 58.1 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout from the previous support level 95.65. MACD which display persistent bearish momentum suggest dollar to extend its losses towards the support level at 95.40.
Resistance level: 95.65, 96.00
Support level: 95.40, 95.00
GBPUSD, H4: GBPUSD was traded higher following prior breakout above previous resistance level at 1.2740. MACD which illustrate bullish bias momentum suggest the pair to extend its gains towards the resistance level 1.2785.
Resistance level: 1.2785, 1.2855
Support level: 1.2715, 1.2600
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1395. MACD which display bullish momentum signal suggest the pair to extend its gains towards the resistance level 1.1430.
Resistance level: 1.1430, 1.1475
Support level: 1.1395, 1.1370
USDJPY, H1: USDJPY was traded lower following prior retracement from the resistance level at 108.55. MACD which illustrate diminishing bullish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 107.70.
Resistance level: 108.55, 109.05
Support level: 107.70, 107.15
AUDUSD, H4: AUDUSD was traded higher following prior breakout above previous resistance level at 0.7115. MACD which illustrate bullish momentum suggest the pair to extend its gains towards the resistance level 0.7170.
Resistance level: 0.7170, 0.7225
Support level: 0.7115, 0.7070
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level 0.6740. MACD which display bullish 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 following prior breakout below the previous support level 1.3415. However, MACD which illustrate diminishing bearish momentum suggest the pair to undergo short term technical correction towards the resistance level 1.3415.
Resistance level: 1.3415, 1.3470
Support level: 1.3325, 1.3215
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 0.9855. MACD which illustrate bearish momentum and the formation of death cross suggest the pair to extend its losses towards support level at 0.9835.
Resistance level: 0.9855, 0.9905
Support level: 0.9835, 0.9810
CrudeOIL, H1: Crude oil price was traded higher following prior breakout above the previous resistance level 48.35. MACD which display diminishing bearish momentum suggest the commodity to extend its gains towards the resistance level 50.35.
Resistance level: 50.35, 52.90
Support level: 48.35, 46.65
GOLD_, H4: Gold price was traded higher while currently testing near the resistance level at 1287.95. MACD which display diminishing bearish momentum suggest gold to extend its gains after successfully breakout above the resistance level 1287.95
Resistance level: 1287.95, 1292.05
Support level: 1283.80, 1277.10