31 December 2019 Morning Session Analysis
Dollar index slumped amid to risk-on sentiment.
Dollar index which measures the currency against a basket of rivals suffered its losses for its third straight session amid to risk-on sentiment of investors in FX market. Easing of trade tensions between U.S.-China trade deal has stoked a shift in sentiment toward riskier asset, which sapping the safe-haven currencies such as the Greenback. According to Reuters, The White House’s trade adviser, Peter Navarro said on yesterday that the U.S.-China Phase 1 trade deal would likely be signed in the next week, however he reiterated that the confirmation would still need to come from President Donald Trump or the U.S. Trade Representative. In addition, South China Morning Post reported on Monday that Washington has sent an invitation to Beijing for the signing ceremony while Beijing has accepted it. However, losses experienced by the greenback was limited following the positive data from the U.S. region was released. According to National Association of Realtors, U.S. Pending Home Sales for last month notched up to 1.2% from the previous reading of -1.3%, matching with the economist forecast at 1.2%. Nonetheless, investors continue to fixate upon the ongoing headlines with regards of trade deal issue until the problem has resolved completely in order to gauge the further movement for the Greenback. As of writing, dollar index depreciated by 0.18% to 96.38.
In the commodities market, crude oil price edged higher in the early yesterday, underpinned by optimism over the U.S China trade deal. Investors anticipated that the resolution of trade war would enhance the global economic growth while insinuating the demand for this black commodity in future. However, at this time investors would have to keep a close watch on the news with regards of the Middle East following U.S. airstrikes in Iraq and Syria in order to obtain further trading signal for the black commodity. As of writing, crude oil price depreciated by 0.02% to $61.61 per barrels. On the other hand, gold price rose 0.1% to $1515.05 per troy ounces amid weaker greenback.
Today’s Holiday Market Close
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Today’s Highlight Events
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 23:00 | USD – CB Consumer Confidence (Dec) | 125.5 | 128.2 | – |
| 05:30
(1st) |
CrudeOIL – API Weekly Crude Oil Stock | -7.900M | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior breakout below the previous support level 96.50. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 95.95.
Resistance level: 96.50, 96.95
Support level: 95.75, 95.30
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3115. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3115, 1.3225
Support level: 1.3005, 1.2905
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1220. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1220, 1.1270
Support level: 1.1160, 1.1120
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 108.90. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 108.50.
Resistance level: 108.90, 109.35
Support level: 108.50, 108.00
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6965. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7020, 0.7060
Support level: 0.6965, 0.6915
NZDUSD, Daily: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6660. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6760.
Resistance level: 0.6760, 0.6825
Support level: 0.6660, 0.6600
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.3045. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3110, 1.3180
Support level: 1.3045, 1.2955
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9670. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9730, 0.9790
Support level: 0.9670, 0.9585
CrudeOIL, Daily: Crude oil price was traded higher while currently testing the resistance level at 61.70. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 61.70, 63.10
Support level: 60.25, 58.45
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1517.00. However, MACD which illustrated increasing bearish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1517.00, 1531.60
Support level: 1488.25, 1462.60