06 Feb 2019 Morning Session Analysis
Dollar soars amid upbeat economic data.
Dollar index which gauge its value against a basket of six major currencies managed to continue ride on bullish trend following the announcement of positive job data. According to Automatic Data Processing (ADP), US Nonfarm Employment Change data came in at 291K, unexpectedly stronger than the economist expectation at 156K while recorded the best performance month since May 2019. It showed that companies in US region start to ramp up their hiring pace, taking on more and more workers and indicating the labor market is still remains robust. Moreover, US ISM Non-Manufacturing data also further stimulated the bullish momentum of dollar index. According to Institute for Supply Management (ISM), US Non-Manufacturing PMI for the month of January recorded a reading of 55.5, slightly higher than the economist forecast of 55.0, indicating US economy is still remain resilient and intact while dragging down the market expectation toward a further rate cut in upcoming interest rate decision. During Asian early trading session, dollar index rose by 0.30% to 98.25.
As for commodities market, crude oil price appreciated by 0.18% to $51.25 a troy ounce despite US region showed a build-up in crude oil inventories level. According to Energy Information Administration (EIA), US Crude Oil Inventories data came in at 3.355M, surprisingly higher than economist forecast of 2.831M, indicating supply glut is getting even worse. However, market participants has become optimistic toward the future outlook of crude oil product as Saudi Arabia is now in urge to further deepening their production cut of up to 1 million barrels per day in order to overcome the impact of coronavirus. Besides, gold price fall by 0.01% to $1556.20 a troy ounce due to strengthening of dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16:00 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 21:30 | USD – Initial Jobless Claims | 216K | 215K | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 97.80. MACD which illustrate bullish signal suggests the pair to extend its gains toward the resistance level at 98.35
Resistance level: 98.35, 98.90
Support level: 97.80, 97.35
GBPUSD, Daily: GBPUSD was traded lower while currently testing near the support level at 1.2955. MACD which illustrate bearish signal suggests the pair to extend its losses after it successfully breakout below the support level at 1.2955.
Resistance level: 1.3095, 1.3225
Support level: 1.2955, 1.2830
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.0995. MACD which illustrate diminishing bullish momentum signal suggests the pair to extend its losses after it successfully breakout below the support level at 1.0995.
Resistance level: 1.1085, 1.1165
Support level: 1.0995, 1.0860
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 109.70. MACD which illustrate bullish bias momentum signal suggests the pair to extend its gains toward the resistance level at 110.20.
Resistance level: 110.20, 110.65
Support level: 109.70, 109.25
AUDUSD, H1: AUDUSD was traded higher following prior rebound from the 20 moving average line (Red). MACD which illustrate diminishing bearish momentum signal suggests the pair to extend its gains toward the resistance level at 0.6775.
Resistance level: 0.6775, 0.6835
Support level: 0.6730, 0.6675
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6500. MACD which illustrate bearish signal suggests the pair to extend its losses toward the support level at 0.6445.
Resistance level: 0.6500, 0.6560
Support level: 0.6445, 0.6385
USDCAD, Daily: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3265. However, MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3320, 1.3385
Support level: 1.3265, 1.3185
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9730. MACD which illustrate bullish momentum signal suggests the pair to extend its gains after it successfully breakout above the resistance level at 0.9730.
Resistance level: 0.9730, 0.9780
Support level: 0.9670, 0.9625
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 49.50. MACD which illustrate upward momentum signal suggests this commodity to extend its gains toward the resistance level at 52.60.
Resistance level: 52.60, 54.65
Support level: 49.50, 48.30
GOLD_, H4: Gold price was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bearish momentum signal suggests its price to be traded higher toward the next resistance level.
Resistance level: 1563.45, 1588.05
Support level: 1542.15, 1523.25