07 January 2020 Morning Session Analysis
Greenback slumps following further escalation on Middle East tension.
Dollar index which measured against a basket of six major currency pairs have slipped during early Asian session as tension between U.S and Iran continue to dominate the headlines. According to the latest reports, U.S have denied entry to Iran’s Foreign Minister Mohammad Javad Zarif, who was to speak at the United Nation’s (UN) Security Council about the US assassination of Qassem SuleimaniIra. Besides that, news of U.S troops aren’t going to leave Iraq also provide further concern for the market. US Defence Secretary Mark T. Esper have confirmed with the Washington Post that the U.S has not made any decision to leave Iraq. In addition, U.S diplomat also mentioned that the military would “follow the laws of armed conflict” if needs to strike Iranian cultural sites. Market are currently concerned that the escalating tension will turned into a full blown war between nations, thus the ongoing headlines continue to grasp market sentiment. As of writing, dollar index fell 0.23% to 96.25.
In the commodities market, crude oil price slightly jumped 0.10% to $62.95 per barrel at the time of writing as Washington and Tehran continue to exchange strike threats. As Iran is among one of the largest oil producers in the Middle East, which accounts for 40% of the world’s crude supply, market are expecting a tighter supply in the Middle East and feared that a breakout of war will seriously hamper movement of crude from the region to global market. On the other hand, gold price climbs 0.15% to $1564.30 a troy ounce as of writing following the events of U.S and Iran continue to provide support for the demand.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 18.00 | EUR – CPI (YoY) (Dec) | 1.0% | 1.3% | – |
| 23.00 | USD – ISM Non-Manufacturing PMI (Dec) | 53.9 | 54.5 | – |
| 23:00 | CAD – Ivey PMI (Dec) | 60.0 | 53.8 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following recent retracement from the resistance level 96.50. MACD which illustrate bearish bias signal with the starting formation of death cross suggest the dollar to extend its retracement towards the support level 96.05.
Resistance level: 96.50, 96.95
Support level: 96.05, 95.60
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level 1.3095. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its gains towards the resistance level 1.3225.
Resistance level: 1.3225, 1.3320
Support level: 1.3095, 1.2965
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1175. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 1.1250.
Resistance level: 1.1250, 1.1340
Support level: 1.1175, 1.1105
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level 108.45. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 108.45, 108.90
Support level: 107.90, 107.40
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level 0.6925. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction in short term towards the resistance level 0.6990.
Resistance level: 0.6990, 0.7040
Support level: 0.6925, 0.6885
NZDUSD, H4: NZDUSD was traded flat while currently testing near the support level 0.6640. However, MACD which illustrate diminishing bearish momentum signal with the starting formation of golden cross suggest the pair to experience a technical correction towards the resistance level 0.6740.
Resistance level: 0.6740, 0.6830
Support level: 0.6640, 0.6565
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level 1.3010. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses towards the support level 1.2925.
Resistance level: 1.3010, 1.3065
Support level: 1.2925, 1.2865
USDCHF, H4: USDCHF was traded lower while currently testing the support level 0.9650. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.9725, 0.9780
Support level: 0.9650, 0.9590
CrudeOIL, H4: Crude oil price was traded lower while currently testing near the support level 62.35. MACD which illustrate bearish momentum signal with the formation of death cross suggest the commodity to extend its losses after it breaks below the support level 62.35.
Resistance level: 64.55, 66.25
Support level: 62.35, 60.85
GOLD_, H4: Gold price was traded lower while currently testing near the support level 1556.95. MACD which illustrate diminishing bullish momentum signal with the starting formation of death cross suggest the commodity to extend its losses after it breaks below the support level.
Resistance level: 1589.00, 1613.35
Support level: 1556.95, 1533.25