8 July 2019 Morning Session Analysis
Dollar retrace from surge on strong jobs data.
Dollar index which measuring against a basket of six major currency pairs have slip from its previous high by 0.05% to 96.86 as of writing after soaring on last Friday NFP data. According to the U.S Department of Labor, the economy have added more jobs than expected in June, with the Nonfarm payrolls rose by 224k, beating market expectations of 160K and also a sharp rebound from previous reading of 72k in May. Despite Average Hourly Earnings and Unemployment Rate data missed its estimate, market remains positive on the upbeat jobs data as the data would dampening expectations of Federal Reserve will cut rates aggressively to hold off a slowdown. On the other hand, USD/CAD receive mixed reaction and slips 0.01% to 1.3072 at the time of writing. Job numbers were lower than expected, with the economy in Canada has lost 2200 jobs according to Statistics Canada. However, strong fundamentals and expectation of central bank keeping its rate steady continue to support the Loonie against the dollar. Market will now await for Bank of Canada meeting this week to determine further direction for the Loonie.
In the commodities market, crude oil price fell by 0.14% to $57.53 per barrel while lingering demand worries continue to dominate the market. According to Organization for Economic Cooperation and Development (OECD), survey shows that oil stock was at 10 times higher to 2010-2014 levels which have raised questions on whether nine months of extended OPEC cuts would be enough to rebalance the market. Besides that, a much smaller than expected decline in inventories last week also added further concern on the slow demand. Next, gold price plummets 0.10% to $1397.76 a troy ounce as of writing following strong dollar on upbeat NFP.
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 |
| 14:00 | EUR – German Industrial Production (MoM) (May) | -1.9% | 0.4% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level 97.00. MACD which display diminishing bullish momentum suggest index to extend its retracement towards the support level 96.35.
Resistance level: 97.00, 97.60
Support level: 95.50, 95.00
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level 1.2490. MACD which display diminishing bearish momentum suggest the pair to extend its rebound towards the resistance level 1.2555.
Resistance level: 1.2555, 1.2610
Support level: 1.2490, 1.2425
EURUSD, H4: EURUSD was traded higher following prior rebound from its low-levels. MACD which display diminishing bearish momentum suggest the pair to extend its rebound towards the resistance level 1.1240.
Resistance level: 1.1240, 1.1305
Support level: 1.1180, 1.1120
USDJPY, H4: USDJPY was traded lower following prior retracement near the resistance level 108.70. MACD which display diminishing bullish momentum suggest the pair to extend its retracement towards the support level 108.20.
Resistance level: 108.70, 109.15
Support level: 108.20, 107.60
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level 0.6965. MACD which display diminishing bearish momentum suggest the pair to extend its rebound towards the resistance level 0.7000.
Resistance level: 0.7000, 0.7040
Support level: 0.6965, 0.6930
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level 0.6635. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after successfully breaking above the resistance level.
Resistance level: 0.6635, 0.6675
Support level: 0.6580, 0.6540
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level 1.3110. MACD which display diminishing bullish momentum suggest the pair to extend its retracement towards the support level 1.3050.
Resistance level: 1.3110, 1.3160
Support level: 1.3050, 1.2985
USDCHF, H4: USDCHF was traded lower while currently testing the support level 0.9905. MACD which display diminishing bullish momentum suggest the pair to extend its losses after successfully breaking below the support level.
Resistance level: 0.9940, 0.9985
Support level: 0.9905, 0.9860
CrudeOIL, H4: Crude oil price was traded higher while currently testing near the resistance level 57.95. MACD which display bullish momentum suggest the commodity to extend its gains after successfully breaking above the resistance level.
Resistance level: 57.95, 60.20
Support level: 56.00, 54.60
GOLD_, H1: Gold price was traded higher following prior rebound from the support level 1386.35. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its rebound towards the resistance level 1405.00.
Resistance level: 1405.00, 1421.40
Support level: 1386.35. 1370.00