8 July 2019 Afternoon Session Analysis
All eyes on Powell’s testimony.
US dollar retraces slightly from its prior high levels while investors shift their focus towards this week’s testimonial delivered by Federal Reserve Chair Jerome Powell. Powell is expected to reinforce market expectation for a late July rate cut or to rein them altogether when he delivers his testimony in front of US Congress later this week. His testimony comes after a strong Nonfarm Payrolls report for the month of June which raised questions whether Fed would initiate a rate cut later this month. Thus, market participants will seek for further clues during his testimony as Fed previously signaled to loosen up their monetary policy if necessary, in order to sustain US economic growth momentum. On the other hand, pound sterling continues to hover near six-months low following a large selloff last Friday due to optimistic Nonfarm Payrolls report. Likewise, recent sluggishness in terms of economy has also raised prospect for an interest rate cut from the Bank of England, which in return places bearish sentiment upon the pound sterling. As of writing, the dollar index was quoted down 0.06% to 96.76 while pair of GBP/USD ticks up 0.02% to 1.2525.
In the commodities market, crude oil price depreciates by 0.21% to $57.49 per barrel. Traders began to question the ability of OPEC’s oil production cut after Organization for Economic Cooperation and Development (OECD) reported that crude oil stocks still overhang at 10 times more than previous levels during 2010-2014. On the other hand, gold price was flat at $1,399.08 a troy ounce as market participants wait for further signals from the market.
Today’s Holiday Market Close
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 96.90. MACD which illustrate diminishing bullish momentum suggest the index to extend its retracement toward the support level at 96.50.
Resistance level: 96.90, 97.35
Support level: 96.50, 96.15
GBPUSD, H1: GBPUSD was traded higher while currently testing the 20 moving average line (red). MACD which illustrate bullish momentum suggest the pair to extend its gains after successfully breakout above the 20 moving average line (Red).
Resistance level: 1.2555, 1.2610
Support level: 1.2490, 1.2435
EURUSD, H1: EURUSD was traded higher while currently testing the 20 moving average line (Red). MACD which illustrate bullish momentum suggest the pair to extend its gains after successfully breakout above the 20 moving average line (Red).
Resistance level: 1.1245, 1.1280
Support level: 1.1210, 1.1170
USDJPY, H4: USDJPY was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement toward the support level at 108.20.
Resistance level: 108.70, 109.15
Support level: 108.20, 107.85
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.6965. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.7000.
Resistance level: 0.7000, 0.7025
Support level: 0.6965, 0.6935
NZDUSD, H1: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6635. MACD which illustrate bullish momentum suggest the pair to extend its gains toward the resistance level at 0.6665.
Resistance level: 0.6665, 0.6705
Support level: 0.6635, 0.6600
USDCAD, H1: USDCAD was traded lower following prior breakout below the 50 moving average line (Blue). MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 1.3045.
Resistance level: 1.3095, 1.3135
Support level: 1.3050, 1.2990
USDCHF, H4: USDCHF was traded lower while currently testing at the support level near 0.9895. MACD which illustrate bearish signal suggests the pair to extend its losses after successfully breakout below the support level at 0.9895.
Resistance level: 0.9925, 0.9965
Support level: 0.9895, 0.9840
CrudeOIL, H1: Crude oil price was traded lower while currently testing 20 moving average line (Red). MACD which illustrate bearish signal suggests its price to extend its losses after successfully breakout below the 20 moving average line (Red).
Resistance level: 57.85, 58.60
Support level: 56.85, 55.90
GOLD_, H4: Gold price was traded higher while currently testing the 50 moving average line (Blue). MACD which illustrate diminishing bearish momentum suggest the commodity to extend its gains after successfully breakout above the 50 moving average line (Blue).
Resistance level: 1401.50, 1436.00
Support level: 1383.60, 1354.60