17 May 2019 Morning Session Analysis
Dollar thrust forward as data delivers.
Overnight, bullish market cheers upon greenback following better-than-expected economic data which has confounded some concerns with regards to possible slowdown in the US. According to reports, Building Permits for the month of April increased by 1.296 million, beating economist forecast of only 1.290 million. In terms of labor market, Initial Jobless Claims for last week increased less than expected with 212K, fared better than economist’ expectation of 220K. Likewise, Philadelphia Fed reported that its Manufacturing Index rose to 16.6 while its employment component shows higher hiring activity with an actual reading of 18.2 for the month of May. All of the data released above has invigorated optimism among investors towards the greenback which lead to a higher buyback in the FX market. On the other hand, pound sterling extended its losses this morning due to higher Brexit and political risks in the United Kingdom. According to report, Parliaments is expected to vote on Brexit agreement in June and UK PM Theresa May has vowed to step down if the plan is being passed. A change in political figure may bring uncertainty upon future Brexit development and thus evoking higher risk aversion away from the UK market. As of writing, dollar index was up 0.27% to 97.60 while GBP/USD slumped 0.02% to 1.2794.
In the commodities market, crude oil price extended gains by 0.06% to $63.15 per barrel. Oil price rallies after Saudi Arabia accused Iran of ordering this week’s attack upon its key oil facilities, fueling tensions in between two of the world’s oil producing nation. On the other hand, gold price extended its losses by 0.03% to $1,286.24 a troy ounce due to a stronger greenback.
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 |
| 17:00 | EUR – CPI (YoY) (Apr) | 1.7% | 1.7% | – |
| 22:00 | USD – Michigan Consumer Sentiment (May) | 97.2 | 97.8 | – |
| 01:00
(18th) |
CrudeOIL – US Baker Hughes Oil Rig Count | 805 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing at the resistance of 97.65. MACD which illustrate bullish signal suggests the index to extend its gains after closing above 97.65.
Resistance level: 97.65, 97.95
Support level: 97.30, 96.85
GBPUSD, Daily: GBPUSD was traded lower while currently testing near the support of 1.2790. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below the target of 1.2790.
Resistance level: 1.2900, 1.2955
Support level: 1.2790, 1.2700
EURUSD, H4: EURUSD was traded lower following prior breakout from the upward trendline. MACD which illustrate bearish signal suggests the pair to advance further down, towards the direction of 1.1155.
Resistance level: 1.1200, 1.1220
Support level: 1.1155, 1.1100
USDJPY, H4: USDJPY was traded higher following prior closure above 109.80. MACD which illustrate bullish signal suggests the pair to extend its gains after closing above the 60-MA line (green).
Resistance level: 110.10, 110.55
Support level: 109.80, 109.40
AUDUSD, Daily: AUDUSD was traded lower after breaking out from the downward channel. MACD which illustrate bearish signal suggests the pair to advance further down, towards the direction of 0.6860.
Resistance level: 0.6915, 0.6955
Support level: 0.6860, 0.6800
NZDUSD, H4: NZDUSD was traded lower after closing below the support of 0.6540. MACD which illustrate bearish signal suggests the pair to extend its losses in mid-term, towards the direction of 0.6515.
Resistance level: 0.6540, 0.6570
Support level: 0.6515, 0.6450
USDCAD, H4: USDCAD was traded higher after a rebound from the upward trendline. MACD which illustrate bullish signal suggests the pair to extend its gains towards the direction of 1.3490.
Resistance level: 1.3490, 1.3530
Support level: 1.3435, 1.3400
USDCHF, H4: USDCHF was traded higher after closing above the resistance near 1.0095. MACD which illustrate bullish signal suggests the pair to extend its gains, towards the direction of 1.0110.
Resistance level: 1.0110, 1.0155
Support level: 1.0095, 1.0055
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from its higher level. MACD which illustrate diminished upward momentum suggests its prices to be traded lower in short-term as technical correction.
Resistance level: 63.70, 64.70
Support level: 62.50, 61.00
GOLD_, H4: Gold price was traded lower while currently testing near the support of 1285.80. MACD which illustrate bearish signal suggests its prices to extend its losses after closing below the target of 1285.80.
Resistance level: 1295.65, 1302.50
Support level: 1285.80, 1275.30