9 January 2019 Morning Session Analysis
Dollar rebound from lows, sterling falls.
Dollar index rallied against a basket of six major currency pairs before early Asian trading session amid uncertainties in Brexit issue which caused investors to shift their investment to the dollar market. With global market sentiment worsening, the pressure weighing on pound sterling provided investors with confidence towards the dollar market although US JOLTs Job Openings data was lower than expected, indicating much less job opportunities. At the moment, all eyes will be placed on UK Parliamentary vote on Prime Minister Theresa May’s Brexit withdrawal on 15th January whereby a rejection towards the deal may caused a large sell-off for the pound sterling and increasing the chances for a hard Brexit. Besides that, investors are also waiting for the results of trade negotiations between US and China held two days ago where hopes of a trade deal may recover market sentiment. Dollar index was up by 0.10% to 95.45 while pair of GBP/USD was down by 0.08% to 1.2720 as of writing.
For the commodities market, crude oil price surged by 1.47% to $50.50 amid recovered hopes on easing of trade wars as US and China met up for trade negotiations two days ago. Investors are bidding on a positive outcome which will further increase the demand for crude oil. Further supporting the oil prices was OPEC’s production cut effective since 1st January to balance the price and inventory of crude oil. On the other hand, gold price edged higher by 0.06% to $1285.85 amid dollar fall.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:00 CAD BoC Monetary Policy Report
23:30 GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 18:00 | EUR – Unemployment Rate (Nov) | 8.1% | 8.1% | – |
| 23:00 | CAD – BoC Interest Rate Decision | 1.75% | 1.75% | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher following prior gap down from the top level. However, MACD which illustrate diminishing bullish momentum and the formation of death cross suggest the index to undergo technical correction in short term toward the support level at 95.15.
Resistance level: 95.60, 96.00
Support level: 95.15, 94.60
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level near the support level at 1.2700. MACD which illustrate starting of bullish momentum and the formation of golden cross suggest the pair to extend its gain toward the resistance level at 1.2785.
Resistance level: 1.2785, 1.2855
Support level: 1.2700, 1.2600
EURUSD, H4: EURUSD was traded higher in the sideway channel following prior rebound from the support level at 1.1430. However, MACD which illustrate diminishing bullish momentum suggest the pair to undergo technical correction toward the support level at 1.1430.
Resistance level: 1.1480, 1.1515
Support level: 1.1430, 1.1410
USDJPY, H1: USDJPY was traded higher following prior rebound from the support level at 108.55. MACD which illustrate diminishing of bearish momentum and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 109.45.
Resistance level: 109.45, 110.25
Support level: 108.55, 107.70
AUDUSD, H1: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7150. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gain toward the resistance level at 0.7235.
Resistance level: 0.7235, 0.7300
Support level: 0.7150, 0.7100
NZDUSD, H1: NZDUSD was traded higher following prior breakout above the previous the resistance level at 0.6740. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 0.6765.
Resistance level: 0.6765, 0.6790
Support level: 0.6740, 0.6715
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.3280. However, MACD which illustrate diminishing bearish momentum suggest the pair to extend its losses toward the support level at 1.3190.
Resistance level: 1.3280, 1.3325
Support level: 1.3190, 1.3140
USDCHF, H4: USDCHF was traded higher in the sideway channel following prior rebound from the support level at 0.9790. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the channel’s top level at 0.9855.
Resistance level: 0.9825, 0.9855
Support level: 0.9790, 0.9755
CrudeOIL, H1: Crude oil was traded higher following prior breakout above the previous resistance level at 49.75. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 51.05.
Resistance level: 51.05, 52.90
Support level: 49.75, 48.35
GOLD_H1: Gold was traded higher following prior breakout above the previous resistance level at 1282.65. However, MACD which illustrate diminishing bullish momentum suggest the commodity to undergo technical correction in short term toward the support level at 1282.65.
Resistance level: 1289.70, 1296.95
Support level: 1282.65, 1277.10