08 January 2020 Morning Session Analysis
Dollar climbs on positive service data.
Dollar index which traded against a basket of six major currency pairs have rose during early Asian after recent service data suggest that the U.S economy remains on strong footing. According to Institute for Supply Management (ISM), ISM non-manufacturing data for December have improved to 55, surpassed market forecast of 54.5. As the service sector holds roughly 80% of U.S. private-sector gross domestic product (GDP), the upbeat data have since boosting the appeal for the greenback. Dollar index rose 0.31% to 96.97 as of writing. Meanwhile, GBP/USD fell 0.07% to 1.3115 at the time of writing amid dovish comments from BOE’s Carney. According to Financial Times, Governor BOE Mark Carney have emphasized that the central bank rates can still to be cut close to zero. At the same time, the lingering concern in Brexit also exert further pressure for the pound sterling as the members of UK Parliament are now began to debate on UK Prime Minster Boris Johnson’s EU Withdrawal Agreement Bill.
In the commodities market, crude oil price soars 2.68% to $64.38 per barrel at the time of writing following API data and Iran Crisis. According to API, crude stockpiles have dropped by 5.9 million barrels for the week ended Jan. 3. At the same time, the tension in Middle East have provide further catalyst for buyers as Iran have stated that it retaliate with “tens of missiles” at Al Asad airbase that hosted U.S military. On the other hand, gold price also soars 1.42% to $1595.75 a troy ounce at the time of writing as market continue to position themselves in the safe-haven market amid a potential full-blown war in the Iran.
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 | Nation & Data | Previous | Forecast | Actual |
| 21.15 | USD – ADP Nonfarm Employment Change (Dec) | 67K | 160K | – |
| 23.30 | CrudeOIL – Crude Oil Inventories | -11.463M | -3.572M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 96.50. However, MACD which illustrate diminishing bullish momentum suggest the dollar to experience a technical correction back towards the current support level 96.50.
Resistance level: 96.95, 97.55
Support level: 96.50, 96.05
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level 1.3095. MACD which display bearish bias with the formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.3225, 1.3320
Support level: 1.3095, 1.2965
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level 1.1175. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its retracement towards the support level 1.1105.
Resistance level: 1.1175, 1.1250
Support level: 1.1105, 1.1045
USDJPY, H4: USDJPY was traded lower while currently testing near the support level 107.90. MACD which illustrate diminishing bullish momentum with the starting formation of death cross suggest the pair to extend its losses after it breaks below the support 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 0.6850. MACD which illustrate ongoing bearish momentum suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.6890, 0.6925
Support level: 0.6850, 0.6805
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level 0.6640. MACD which illustrate bearish momentum suggest the pair to extend its losses towards the support level 0.6565.
Resistance level: 0.6640, 0.6740
Support level: 0.6565, 0.6500
USDCAD, H4: USDCAD was traded flat while currently testing near the resistance level 1.3010. However, MACD which illustrate diminishing bullish momentum suggest the pair to be traded lower towards the support level 1.2925.
Resistance level: 1.3010, 1.3065
Support level: 1.2925, 1.2865
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level 0.9725. MACD which illustrate diminishing bullish momentum with the starting formation of death cross suggest the pair to extend its retracement towards the support level 0.9650.
Resistance level: 0.9725, 0.9780
Support level: 0.9650, 0.9590
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level 64.70. MACD which display bullish bias signal with the formation of golden cross suggest the commodity to extend its gains after it breaks above the resistance level.
Resistance level: 64.70, 66.25
Support level: 62.45, 60.85
GOLD_, H4: Gold price was traded higher while currently testing the resistance level 1589.00. MACD which illustrate bullish bias signal suggest the commodity to extend its gains after it breaks above the resistance level.
Resistance level: 1589.00, 1613.35
Support level: 1556.95, 1533.25