27 February 2019 Morning Session Analysis
Dollar cripples as Powell unleash doves.
US dollar tumbles further on yesterday over the backdrop of dovish statement given by Federal Reserve Chair Jerome Powell. During Asian trading session, the dollar index was quoted down 0.37% to 95.87. In his Semiannual Monetary Policy Report to the Congress, Powell noted that the US job market remains strong and they are seeing further signs of improvement in wage growth. However, he reiterates that the central bank may be patient in adjusting their monetary policy in order to maintain sustainable growth in labor market and keeping current inflationary pressure near the benchmark of 2%. His remarks have dialed down investor’s expectation for further rate hikes in the US and thus shifting their focus towards portfolios in other major and emerging markets. In the UK, pair of GBP/USD rose 0.06% to 1.3257. According to The Guardian’s political editor, the opposition Labor Party is planning to bring second referendum amendment for a vote in the Parliament later today. A second referendum may avoid Brexit all-in-all and thus boosting market sentiment towards the pound sterling.
In the commodities market, crude oil price extended its recovery by 1.37% to $55.92 per barrel. Oil prices rose slightly after American Petroleum Institute (API) reported a large draw in crude oil stock by 4.2 million barrels for last week. Otherwise, gold price ticked up 0.01% to $1,328.67 a troy ounce due to weaker US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 21:30 | CAD – Core CPI (MoM) (Jan) | -0.2% | – | – |
| 23:00 | USD – Factory Orders (MoM) (Dec) | -0.6% | 1.5% | – |
| 23:00 | USD – Pending Home Sales (MoM) (Jan) | -2.2% | 0.8% | – |
| 23:30 | CrudeOIL – EIA Crude Oil Inventories | 3.672M | 2.842M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index remains traded within a descending channel while currently testing at the bottom level. MACD which illustrate bearish signal suggests the index to extend its losses after breaking the bottom level.
Resistance level: 96.00, 96.65
Support level: 95.50, 95.00
GBPUSD, H4: GBPUSD was traded lower while currently testing at the support of 1.3255. MACD which illustrate diminishing upward momentum suggests the pair to extend its losses in short-term after closing below 1.3255.
Resistance level: 1.3345, 1.3400
Support level: 1.3255, 1.3170
EURUSD, H4: EURUSD was traded higher while currently testing at the resistance level of 1.1400. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1400, 1.1440
Support level: 1.1360, 1.1310
USDJPY, H4: USDJPY was traded lower while currently testing at the support level of 110.50. MACD which illustrate bearish signal suggests the pair to advance further down after breaking the support of 110.50.
Resistance level: 111.00, 111.45
Support level: 110.50, 110.00
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the lower level of ascending channel. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7225, 0.7275
Support level: 0.7170, 0.7105
NZDUSD, H4: NZDUSD was traded lower following prior retracement from its higher levels. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6935, 0.6970
Support level: 0.6890, 0.6820
USDCAD, H4: USDCAD remains traded within a descending channel following prior retrace from the top. MACD which begins to form a bearish signal suggests the pair to advance further down, towards the direction of 1.3120.
Resistance level: 1.3175, 1.3220
Support level: 1.3120, 1.3070
USDCHF, H1: USDCHF remains traded within a descending triangle while currently testing at the bottom level. Due to the lack of signal from MACD and price action, it is suggested to wait for a breakout before entering the market.
Resistance level: 1.0040, 1.0080
Support level: 0.9995, 0.9970
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support of 55.15. MACD which illustrate bullish signal suggests its prices to extend its gains, towards the direction of 56.45.
Resistance level: 56.45, 57.45
Support level: 55.60, 55.15
GOLD_, H1: Gold price remains traded within a descending triangle while currently testing at the top level. Although MACD has formed a bullish signal, a breakout from the top level is required to attain further confirmation.
Resistance level: 1329.00, 1333.00
Support level: 1323.00, 1315.00