17 July 2019 Afternoon Session Analysis
Euro slumps as economic sentiment deteriorates.
Euro received tremendous bearish pressure on yesterday following bleak economic data from the region. As of writing, pair of EUR/USD recovered some losses by 0.03% to 1.1212 during Asian trading session. For the month of July, German ZEW Economic Sentiment slumped further to -24.5, missing economist forecast of -22.1. Continuous negative trend in the German industry would likely to enforce further bearish sentiment upon the EU zone while justifying European Central Bank’s pledge to keep their monetary policy loose. The data has also increased market’s prospect for rate cut in the near-term which may see their current interest rate being slashed into the negative territory. On the other hand, pair of USD/JPY depreciates by 0.04% to 108.17. Safe-haven Japanese yen received some bidding in the FX market after US President Donald Trump threatens to impose tariffs upon China goods after Beijing failed to purchase more US farm goods. For the time being, investors will place their focus upon the developments in between US and China with regards to trade war in order to gain more market signals.
In the commodities market, crude oil price rose 0.35% to $57.62 per barrel. Oil prices stabilizes after American Petroleum Institute reported that US crude inventories fell by 1.4 million barrels for last week. On the other hand, gold price appreciates by 0.01% to $1,405.96 a troy ounce due to heightened trade war risk in the market.
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 | Nation & Data | Previous | Forecast | Actual |
| 16.30 | GBP – CPI (YoY) (Jun) | 2.0% | 2.0% | – |
| 17:00 | EUR – CPI (YoY) (Jun) | 1.2% | 1.2% | – |
| 20:30 | USD – Building Permits (Jun) | 1.299M | 1.300M | – |
| 20:30 | CAD – Core CPI (MoM) (Jun) | 0.4% | – | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -9.499M | -2.694M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 96.45. MACD which illustrate bullish bias momentum signal suggest the dollar to extend its gains toward the resistance level at 97.10.
Resistance level: 97.10, 97.50
Support level: 96.50, 96.20
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the lower level. MACD which display diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.2435.
Resistance level: 1.2435, 1.2500
Support level: 1.2370, 1.2300
EURUSD, H1: EURUSD was traded higher while currently testing the resistance level at 1.1210. MACD which illustrate bullish momentum suggest the pair to extend its gains after successfully breakout above the resistance level at 1.1210.
Resistance level: 1.1210, 1.1245
Support level: 1.1170, 1.1125
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 108.20. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 107.75.
Resistance level: 108.20, 108.70
Support level: 107.75, 107.40
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.7030. MACD which display bearish momentum with the formation of death cross suggest the pair to extend its losses toward the support level at 0.7000.
Resistance level: 0.7030, 0.7055
Support level: 0.7000, 0.6965
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the 20 moving average line (Red). MACD which display diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.6725.
Resistance level: 0.6725, 0.6780
Support level: 0.6660, 0.6600
USDCAD, H1: USDCAD was traded lower following prior retracement from the resistance level at 1.3095. MACD which display diminishing bearish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 1.3050.
Resistance level: 1.3095, 1.3135
Support level: 1.3050, 1.2990
USDCHF, H1: USDCHF was traded lower while currently testing the 20 moving average line (Red). MACD which illustrate bearish momentum signal suggest the pair to extend its losses after successfully breakout below the 20 moving average line.
Resistance level: 0.9885, 0.9925
Support level: 0.9840, 0.9805
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level at 57.85. MACD which illustrate bearish momentum suggest the commodity to extend its losses toward the support level at 56.85.
Resistance level: 58.60, 60.35
Support level: 56.85, 55.90
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1403.00. MACD which illustrate bearish bias momentum signal suggest the commodity to extend its losses after successfully breakout below the support level at 1403.00.
Resistance level: 1424.05, 1436.35
Support level: 1403.00, 1383.60