21 May 2019 Morning Session Analysis
Dollar flats while trade war brews.
Greenback was traded flat on Monday following heightening trade tension in between US and China. In an unprecedented move, tech giants such as Google, Intel and Qualcomm have announced to halt any business relation with Huawei by cutting off supply of semiconductors, chips and services. The announcement has raised more uncertainty over how trade negotiation in between US and China will pan out in the future. The move was announced after Trump administration blacklisted Huawei last week over national security concern as Huawei was accused to have close ties with the Chinese government. As of writing, the dollar index slumped 0.07% to 97.73 during Asian trading session. Similarly, pair of GBP/USD was traded flat at around 1.2725 as market participants await more signals with regards to Brexit. Earlier today, UK finance minister Philip Hammond warned that providing support for a “No deal Brexit” will inflict significant damage to UK’s economy and their living standard as no preparation could avoid its consequences.
As for commodities, crude oil price rebounds by 0.14% to $63.23 per barrel. Oil futures received some bullish support after Venezuela crude production slumped further from 1.2 million barrels per day to 830,000 barrels per day, its lowest since January 2003. Otherwise, gold price was traded flat around $1,277.74 a troy ounce as market participants await further signals from the market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16:30 GBP BoE Gov Carney Speaks
Tentative GBP Inflation Report Hearings
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 16:30 | GBP – CBI Industrial Trends Orders (May) | -5 | -5 | – |
| 22:00 | USD – Existing Home Sales (Apr) | 5.21M | 5.35M | – |
| 05:30
(22nd) |
CrudeOIL – API Weekly Crude Oil Stock | 8.600M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retrace from its higher levels. MACD which begins to form a death cross signal suggests the index to be traded lower in short-term, towards the direction of 97.65.
Resistance level: 97.95, 98.60
Support level: 97.65, 97.30
GBPUSD, H1: GBPUSD was traded flat near the support of 1.2700. 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: 1.2790, 1.2900
Support level: 1.2700, 1.2630
EURUSD, H1: EURUSD was traded flat following prior retracement from the 60-MA line (green). MACD which illustrate diminishing upward momentum suggests the pair to be traded lower after closing below the 20-MA line (red).
Resistance level: 1.1200, 1.1220
Support level: 1.1155, 1.1100
USDJPY, H1: USDJPY was traded higher following prior rebound from the lower level of the upward channel. MACD which begins to form a golden cross signal suggests the pair to extend its gains after closing above 110.10.
Resistance level: 110.10, 110.55
Support level: 109.80, 109.40
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the downward trendline. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term after closing below 0.6915.
Resistance level: 0.6955, 0.7020
Support level: 0.6915, 0.6860
NZDUSD, H1: NZDUSD was traded higher following prior rebound while currently testing near the resistance at 0.6540. MACD which illustrate bullish signal suggests the pair to extend its gains after breaking the target of 0.6540.
Resistance level: 0.6540, 0.6570
Support level: 0.6515, 0.6450
USDCAD, H4: USDCAD was traded within a sideways channel while recently closed below 1.3435. MACD which illustrate bearish signal suggests the pair to advance further down, towards the direction of 1.3400.
Resistance level: 1.3435, 1.3490
Support level: 1.3400, 1.3370
USDCHF, H1: USDCHF was traded higher following prior rebound from the support level of 1.0080. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term, towards the direction of 1.0095.
Resistance level: 1.0095, 1.0110
Support level: 1.0080, 1.0055
CrudeOIL, H1: Crude oil price remains traded within a sideways channel following prior retracement from the top level. MACD which illustrate diminished upward momentum suggests the its prices to be traded lower in short-term after closing below the 60-MA line (green).
Resistance level: 63.70, 64.70
Support level: 62.50, 61.00
GOLD_, H1: Gold price was traded flat after breaking out from the upward trendline. MACD which illustrate diminishing upward momentum suggests its prices to extend its losses after breaking the strong support near 1275.30.
Resistance level: 1285.80, 1295.65
Support level: 1275.30, 1267.00