24 July 2019 Afternoon Session Analysis
Dollar gains as trade hopes swept along with debt ceiling deal.
Dollar index extended its gains against its basket of six major currency pairs amid renewed trade hopes. According to reports, U.S have made it official that U.S trade representative Robert Lighthizer will travel to China for another round of talks in hopes to achieve a trade deal. The news have since boosted the demand for the greenback. At the same time, dollar was also cheered on U.S President Donald Trump and Congress struck a deal on raising debt ceiling which have eased market fears of government defaulting, providing further boost for the dollar. On the other hand, pound sterling suffered losses after a slight bounce since leading candidate Boris Johnson was elected as Prime Minister and also the leader of the Conservative Party. Boris Johnson who was known for his hardline stance on Brexit, vowed to bring UK out of the EU by the end of October. However, no meeting was scheduled in between the UK government and European Union over the summer as of writing, with EU officials wanting to see a plan from Johnson first. Dollar index rose 0.03% to 97.39 while GBP/USD fell 0.04% to 1.2429 at the time of writing.
In the commodities market, crude oil price surged 0.15% to $57.10 per barrel as of writing following an unexpected drop in U.S crude inventories. According to reports from American Petroleum Institute, U.S crude stocks have fell more than expected last week, with the reading came in at a decline of 10.961 million, better than analysts’ expectations of a decrease of 4 million barrels. At the same time, tensions in the Middle East also provide ongoing support for the commodity as a potential confrontation could largely disrupt global oil supply. Next, gold price dips 0.04% to $1418.65 a troy ounce at the time of writing as dollar remain strengthening on trade optimism and debt deal.
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 above previous resistance level 97.00. However, MACD which illustrate diminishing bullish momentum suggest index to undergo short-term technical correction and retrace towards the support level 97.00.
Resistance level: 97.55, 98.20
Support level: 97.00, 96.35
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.2425. However, MACD which illustrate diminishing bearish momentum suggest the pair to undergo short-term technical correction and rebound towards the resistance level 1.2490.
Resistance level: 1.2490, 1.2555
Support level: 1.2425, 1.2365
EURUSD, H4: EURUSD was traded lower prior breakout below previous support level at 1.1185. However, MACD which illustrate diminishing bearish momentum suggest the pair to undergo short-term technical correction and rebound towards the resistance level 1.1185.
Resistance level: 1.1185, 1.1245
Support level: 1.1120, 1.1075
USDJPY, H4: USDJPY was traded lower following prior retracement from its resistance level 108.20. MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement towards the support level 107.60.
Resistance level: 108.20, 108.70
Support level: 107.60, 107.25
AUDUSD, H4: AUDUSD was traded lower following prior breakout below previous support level 0.7000. MACD which display bearish momentum suggest the pair to extend its losses towards the support level 0.6965.
Resistance level: 0.7000, 0.7040
Support level: 0.6965, 0.6930
NZDUSD, H4: NZDUSD was traded lower following prior breakout below previous support level 0.6720. However, MACD which display diminishing bearish momentum suggest the pair to rebound back towards the resistance level 0.6720 as a short-term technical correction.
Resistance level: 0.6720, 0.6770
Support level: 0.6675, 0.6635
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level 1.3160. MACD which display diminishing bullish momentum suggest the pair to extend its retracement towards the support level 1.3090.
Resistance level: 1.3160, 1.3240
Support level: 1.3090, 1.3050
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level 0.9860. However, MACD which illustrate diminishing bullish momentum suggest the pair to retrace towards the support level 0.9805 as a short-term technical correction.
Resistance level: 0.9860, 0.9905
Support level: 0.9805, 0.9750
CrudeOIL, H4: Crude oil price was traded higher while currently testing near the 60-MA line (red). MACD which illustrate bullish bias signal suggest the commodity to extend its gains after successfully closing above the 60-MA line.
Resistance level: 57.95, 60.20
Support level: 56.30, 54.60
GOLD_, H4: Gold price was traded higher while currently testing the resistance level 1421.40. MACD which display bullish bias signal suggest gold to extend its gains after successfully breaking above the resistance level.
Resistance level: 1421.40, 1435.90
Support level: 1405.00, 1386.35