24 July 2019 Morning Session Analysis
Greenback rises as debt ceiling raised.
US dollar extended its gains on yesterday after US President Donald Trump and Congress achieved consensus to raise debt ceiling which would ease the fears of a government default. As of writing, the dollar index was quoted up 0.45% to 97.35 against a basket of six major peers. The deal which was crafted by Democrat Nancy Pelosi and US Treasury secretary Steven Mnuchin will increase US debt ceiling until mid of 2021. The agreement to do so will produce hundreds of billions in new spending and eases fiscal crisis off Washington for more than two years. However, the budget increase while coupled with tax cuts has raised concerns over the lack of fiscal discipline. Nonetheless, gains on the greenback were limited following the release of downbeat housing data from the region. For the month of June, Existing Home Sales came in at only 5.27 million units, missing economist forecast of 5.35 million units. For the time being, investors will continue to ponder upon the release of second quarter GDP reading to attain further market signals. In the other region, pair of EUR/USD ticked down 0.01% to 1.1151. Euro experienced a large selloff on yesterday as traders shies away from the currency ahead of European Central Bank’s (ECB) monetary policy meeting on tomorrow. Most investors are speculating ECB to change their policy forward guidance and signal upcoming cuts later this year.
In the commodities market, crude oil price rose 0.05% to $57.10 per barrel. Oil prices received some bullish support after American Petroleum Institute (API) reported a large draw in US oil stocks by -10.961 million barrels last week. As for now, investors will wait for official figures from Energy Information Administration (EIA) later tonight for more market signals. On the other hand, gold price slumped 0.04% to $1,417.05 a troy ounce as rising dollar decreases the appeal of the commodity for bearers of other currencies.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative (25th) GBP UK Prime Minister May Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:30 | EUR – German Manufacturing PMI (Jul) | 45.0 | 45.1 | – |
| 22:00 | USD – New Home Sales (Jun) | 626K | 659K | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -3.116M | -4.011M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout near 97.05. MACD which illustrate bullish signal suggests the index to advance further up, towards the direction of 97.50.
Resistance level: 97.50, 98.20
Support level: 97.05, 96.75
GBPUSD, H4: GBPUSD was traded lower following prior closure below 1.2450. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 1.2400.
Resistance level: 1.2450, 1.2500
Support level: 1.2400, 1.2350
EURUSD, Daily: EURUSD was traded lower while currently testing near the support of 1.1150. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 1.1150.
Resistance level: 1.1200, 1.1245
Support level: 1.1150, 1.1110
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance of 108.25. MACD which illustrate bullish signal suggest the pair to advance further up after successfully closing above 108.25.
Resistance level: 108.25, 108.50
Support level: 107.70, 107.30
AUDUSD, H4: AUDUSD was traded lower following prior closure below 0.7000. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 0.6960.
Resistance level: 0.7000, 0.7040
Support level: 0.6960, 0.6900
NZDUSD, H4: NZDUSD was traded lower following prior closure below 0.6710. MACD which illustrate bearish signal suggests the pair to advance further down, towards the direction of 0.6655.
Resistance level: 0.6710, 0.6735
Support level: 0.6655, 0.6590
USDCAD, Daily: USDCAD was traded higher while currently testing near the resistance level of 1.3140. MACD which illustrate bullish signal suggests the pair to extend its gains after closing above 1.3140.
Resistance level: 1.3140, 1.3220
Support level: 1.3060, 1.3010
USDCHF, H4: USDCHF was traded higher following prior breakout from the top level of downward channel. MACD which illustrate bullish signal suggests the pair to extend its gains towards the direction of 0.9890.
Resistance level: 0.9890, 0.9970
Support level: 0.9835, 0.9805
CrudeOIL, H1: Crude oil price was traded lower following prior retracement from 57.25. MACD which illustrate diminishing upward momentum suggests its prices to be traded lower in short-term as technical correction.
Resistance level: 57.25, 58.85
Support level: 55.70, 55.00
GOLD_, H1: Gold price was traded lower while currently testing near the support of 1415.00. MACD which illustrate bearish signal suggests its price to extend its losses after closing below the level at 1415.00.
Resistance level: 1423.00, 1435.00
Support level: 1415.00, 1402.50