22 May 2019 Morning Session Analysis
Greenback retraces as housing data disappoints.
US dollar retraced slightly from its prior high levels following the release of bearish housing data from yesterday. As of writing, the dollar index slipped 0.07% to 97.81 during early Asian trading session. According to US National Association of Realtors, Existing Home Sales for the month of April came in at only 5.19 million units, missing economist forecast for a total of 5.35 million units. The data has undergone depreciation in sales unit for its 14th consecutive months as high prices and tight supply at the lower end of the market continues to sideline potential buyers. However, losses on the greenback were limited after Boston Federal Reserve President Eric Rosengren reiterates that the current policy setting is accommodative and consistent with inflation which may return to the target of 2%. In addition, Rosengren noted current forecasts sees the economy to grow above its potential and current low inflation may be temporary. His comments have dialed down some market concern over the possibility of a rate cut from the Fed by end of this year.
In the commodities market, crude oil price retraced by 0.02% to $62.81 per barrel. Oil futures continues to trade within a tight range while market participants await further signals from the market such as tonight’s EIA Crude Oil Inventories and comments from members of OPEC. On the other hand, gold price ticked down 0.01% to $1,274.62 a troy ounce as market participants shifted their portfolio towards riskier assets.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
15:30 EUR ECB President Draghi Speaks
Tentative GBP Inflation Report Hearings
02:00 (23rd) USD FOMC Meeting Minutes
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 16:30 | GBP – CPI (YoY) (Apr) | 1.9% | 2.2% | – |
| 20:30 | CAD – Core Retail Sales (MoM) (Mar) | 0.6% | 0.9% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 5.431M | -0.599M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retrace from the resistance of 97.95. MACD which begins to form a bearish signal suggests the index to be traded lower in short-term as technical correction.
Resistance level: 97.95, 98.60
Support level: 97.65, 97.30
GBPUSD, Daily: GBPUSD was traded lower while currently testing at the support of 1.2700. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below the target of 1.2700.
Resistance level: 1.2790, 1.2900
Support level: 1.2700, 1.2630
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level of 1.1155. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1200, 1.1220
Support level: 1.1155, 1.1100
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance of 110.55. MACD which begins to illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 110.55, 111.00
Support level: 110.10, 109.80
AUDUSD, H1: AUDUSD was traded lower following prior retracement from the resistance of 0.6885. MACD which illustrate diminished upward momentum suggests the pair to be traded lower after closing below the 20-MA line (red).
Resistance level: 0.6885, 0.6915
Support level: 0.6860, 0.6840
NZDUSD, H1: NZDUSD was traded lower following prior retrace from the 20-MA line (red). MACD which illustrate diminished upward momentum suggests the pair to extend its losses after breaking the support level at 0.6500.
Resistance level: 0.6540, 0.6570
Support level: 0.6500, 0.6450
USDCAD, H4: USDCAD was traded lower while currently testing at the bottom level of sideways channel. MACD which illustrate bearish signal suggests the pair to extend its losses after a breakout occur at the bottom.
Resistance level: 1.3435, 1.3490
Support level: 1.3400, 1.3370
USDCHF, H4: USDCHF was traded lower following prior retrace from its higher levels. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.0110, 1.0155
Support level: 1.0080, 1.0055
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance of 63.70. MACD which begins to form a bearish signal suggests its prices to extend further down after breaking the strong support near 62.50.
Resistance level: 63.70, 64.70
Support level: 62.50, 61.00
GOLD_, H4: Gold price was traded higher following prior rebound from its lower level. MACD which illustrate bullish signal suggests its prices to extend further up after closing above the resistance of 1275.30.
Resistance level: 1275.30, 1280.00
Support level: 1269.10, 1253.30