02 January 2019 Morning Session Analysis
Dollar falls amid political uncertainties.
Dollar index fell against a basket of six major currencies while opening the market lower by 0.09% to 95.65 after closing for New Year celebration amid poor sentiment over the weekend. On the first day of year 2019, US President Donald Trump on his Twitter criticized the Democrats party for not allocating funds for the Mexico border wall. In his tweet, Trump emphasized that a wall is necessary for Border Security and that Open Borders will only allow more crime and drugs activities. Before the new year celebration, Trump had already threatened to extend the government shutdown period if no fund was allocated for his border wall plan and recent news had spiraled fears of political uncertainties among investors. In other news, pair of USD/JPY was extended its losses 0.10% to 109.60 after hitting a six-months low on New Year’s Eve. Fear of global economy slowdown and political uncertainties in the market had caused investors to deposit their investment to safe-haven Yen to seek shelter during the New Year. With poor economic growth forecast in both euro zone and the dollar market, Japan Yen underwent large demand for its loose policies and stable economic growth.
In the commodities market, crude oil price surged by 1.69% to $45.90 per barrel, celebrating the New Year with positive outlook for the oil market as OPEC production cut takes into effect. Crude oil price recorded its first yearly loss in 2018 since year 2015 amid concerns over US oversupply and trade war uncertainties. Current outlook for crude oil market remained cloudy while oil bulls hope for a positive impact on oil prices with OPEC production cut of 1.2m bpd taken into effect. On the other hand, gold price fell by 0.04% to $1278.95 a troy ounce as a technical correction while holding on to its 1280 level.
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 | Market & Data | Previous | Forecast | Actual |
| 16:55 | EUR – German Manufacturing PMI (Dec) | 51.5 | 51.5 | – |
| 17:30 | GBP – Manufacturing PMI (Dec) | 53.1 | 52.6 | – |
| 22:45 | USD – Manufacturing PMI (Dec) | 53.9 | 53.9 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing near the resistance level 95.70. MACD which illustrate diminishing bearish momentum suggest index to extend its gains after successfully closing its candle above the resistance level.
Resistance level: 95.70, 96.00
Support level: 95.25, 94.95
GBPUSD, H4: GBPUSD was traded lower following prior breakout below previous support level at 1.2740. MACD which display diminishing bullish momentum suggest the pair to extend its losses towards the support level 1.2700.
Resistance level: 1.2740, 1.2780
Support level: 1.2700, 1.2660
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level 1.1470. MACD which illustrate starting bearish momentum and the formation of death cross suggest the pair to extend its retracement towards the support level 1.1435.
Resistance level: 1.1470, 1.1520
Support level: 1.1435, 1.1395
USDJPY, H4: USDJPY was traded lower while currently testing near the support level 109.30. MACD which illustrate ongoing bearish momentum suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 109.75, 110.20
Support level: 109.30, 108.75
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level 0.7000. MACD which display diminished bullish momentum and the starting formation of death cross suggest the pair to extend its losses after successfully closing its candle below the support level.
Resistance level: 0.7035, 0.7070
Support level: 0.7000, 0.6970
NZDUSD, H4: NZDUSD was traded lower following prior breakout below previous support level at 0.6700. MACD which display diminishing bullish momentum suggest the pair to extend its losses towards the support level 0.6650.
Resistance level: 0.6700, 0.6745
Support level: 0.6655, 0.6600
USDCAD, H1: USDCAD was traded higher following prior breakout above the previous resistance level 1.3645. MACD which display bullish momentum and the formation of golden cross suggest the pair to extend its gains towards the resistance level at 1.3680.
Resistance level: 1.3680, 1.3720
Support level: 1.3645, 1.3610
USDCHF, H1: USDCHF was traded higher while currently testing near the resistance level 0.9835. MACD which display starting bullish momentum and the formation of golden cross suggest the pair to extend its gains after a breakout above the resistance level.
Resistance level: 0.9835, 0.9875
Support level: 0.9785, 0.9750
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 45.20. MACD which display diminishing bullish momentum suggest the commodity to extend its losses towards the lower level of the sideway channel after successfully breaking below the support level.
Resistance level: 47.00, 48.50
Support level: 45.20, 43.55
GOLD_, H1: Gold price was traded higher while currently testing near the resistance level 1283.00. MACD which illustrate starting bullish momentum suggest gold to extend its gains after a breakout above the resistance level.
Resistance level: 1283.00, 1288.10
Support level: 1278.00, 1273.50