21 May 2019 Afternoon Session Analysis
Dollar remains strong as US lift ban temporary.
Dollar index remains steady against its basket of six major currency pairs after U.S lifted the ban on China’s tech company Huawei for temporary. Recently, U.S President Donald Trump have signed an executive order that restrict U.S companies from having any business ties with China tech giant Huawei. The move have further escalated the tension between both economic powerhouse U.S and China. However, the Department of Commerce have now lifted the ban temporarily and provide Huawei a temporary license to maintain its current products. As relations between China and U.S have further worsen, market remains optimistic on U.S economy where recent data indicates the economic health in U.S remain robust. Dollar index rose 0.06% to 97.80 as of writing. On the other hand, AUD/USD plummets 0.35% to 0.6878 at the time of writing following dovish signal from Reserve Bank of Australia (RBA). According to meeting minutes by RBA, members in the RBA have discussed the possibility of rate cut due to an uptick in unemployment rate. Besides that, RBA’s Governor Philip Lowe also said on Tuesday that the central bank will consider the case for lower interest rates during its June policy meeting. The dovish sentiment has cemented further expectation of first rate cut to a record low of 1.50%, thus causing investors to flee from the Aussie.
As for commodities, crude oil price rose 0.06% to $63.42 per barrel as of writing as escalating tension between U.S and Iran continue to drive the commodity. According to recent reports, U.S. President Donald Trump on Monday threatened Iran with “great force” if it attacked U.S. interests in the Middle East. The rising tension in the Middle East have continue to support the demand for the oil where market continue to expect a tighter market. On the other hand, gold price fell 0.15% to $1275.73 a troy ounce at the time of writing as the safe-haven asset remain pressured by strong dollar.
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, Daily: Dollar index was traded higher following prior breakout above the resistance level 97.60. MACD which illustrate bullish momentum and the formation of golden cross suggest index to extend its gains towards the resistance level 98.25.
Resistance level: 98.25, 98.60
Support level: 97.60, 97.00
GBPUSD, H4: GBPUSD was traded lower following prior retracement from top levels. However, MACD which illustrate bullish momentum suggest the pair to undergo short-term technical correction and rebound towards the resistance level 1.2785.
Resistance level: 1.2785, 1.2865
Support level: 1.2690, 1.2615
EURUSD, H4: EURUSD was traded lower following prior retracement from the 20-MA line (green). MACD which illustrate bearish bias suggest the pair to extend its retracement towards the support level at 1.1150.
Resistance level: 1.1180, 1.1240
Support level: 1.1150, 1.1120
USDJPY, H1: USDJPY was traded higher while currently testing near the resistance level 110.20. However, MACD which illustrate diminishing bullish momentum suggest the pair to undergo short-term technical correction and retrace from the resistance level.
Resistance level: 110.20, 110.55
Support level: 109.70, 109.15
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level 0.6915. MACD which illustrate bearish bias signal suggest the pair to extend its retracement towards the support level 0.6855.
Resistance level: 0.6915, 0.6970
Support level: 0.6855, 0.6820
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level 0.6510. MACD which illustrate bearish bias signal suggest the pair to extend its losses after successfully breaking below the support level.
Resistance level: 0.6580, 0.6645
Support level: 0.6515, 0.6460
USDCAD, H4: USDCAD remain traded in a sideway channel after breaking below the previous support level 1.3435. MACD which illustrate bearish momentum suggest the pair to extend its losses towards the bottom-level of the channel at 1.3380.
Resistance level: 1.3435, 1.3485
Support level: 1.3380, 1.3305
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level 1.0085. MACD which illustrate bullish bias signal suggest the pair to extend its rebound towards the resistance level 1.0130.
Resistance level: 1.0130, 1.0190
Support level: 1.0085, 1.0040
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level 63.15. MACD which illustrate bullish bias signal suggest the commodity to extend its gains towards the resistance level 64.65.
Resistance level: 64.65, 66.00
Support level: 63.15, 61.80
GOLD_, H4: Gold price was traded lower while currently testing the support level 1275.40. However, MACD which display diminishing bearish momentum suggest the commodity to undergo short-term technical correction and rebound towards the resistance level 1287.85.
Resistance level: 1287.85, 1295.65
Support level: 1275.40, 1266.35