10 January 2019 Morning Session Analysis
Dollar ‘stunned’ amid dovish Fed Minutes.
Dollar index which gauge against a basket of six major currencies tumbled to the lowest level in three months during early Asian trading session. Greenback received bearish momentum from the growing expectations that the Federal Reserve will put it hiking interest rate policy on pause this year. According to the Fed’s Minutes, there are few of the policymakers proposed to keep the interest rate steady during the meeting on 18 – 19 December. Moreover, market sentiment bolstered after U.S. President Donald Trump reiterated that the Sino trade talk was gone well, the optimism in trade dispute may reduced the demand of safe heaven asset. As of writing, Dollar index inched down 0.08% to 94.70.
On the other hand, the pair of AUD/USD down 0.20% to 0.7155 after the release of weaker than expected China factory-gate inflation. China Producer price index which measure the prices businesses receive for their goods and services came in at 0.9%, comparing to the forecast of 1.6% has deteriorated the sentiment of Aussie dollar, caused the market participant sell off the specific currency and shifted their investment to other market.
For the commodities market, crude oil price plunged by 0.90% to $51.70 per barrel amid yesterday EIA Crude Oil Investories data showed the weekly change in number of barrels of crude oil held by US firms does not up to the expectations. The economists forecast of the data was -2.400M barrels while the data actual reading was came in at -1.680M only. Besides, gold price inched up 0.13% to $1294.65 per ounce amid Dollar market sentiment faded which lead to safe heaven asset demand increased.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:00 CAD BoC Monetary Policy Report
23:30 GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 18:00 | EUR – Unemployment Rate (Nov) | 8.1% | 8.1% | – |
| 23:00 | CAD – BoC Interest Rate Decision | 1.75% | 1.75% | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher following prior gap down from the top level. However, MACD which illustrate diminishing bullish momentum and the formation of death cross suggest the index to undergo technical correction in short term toward the support level at 95.15.
Resistance level: 95.60, 96.00
Support level: 95.15, 94.60
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level near the support level at 1.2700. MACD which illustrate starting of bullish momentum and the formation of golden cross suggest the pair to extend its gain toward the resistance level at 1.2785.
Resistance level: 1.2785, 1.2855
Support level: 1.2700, 1.2600
EURUSD, H4: EURUSD was traded higher in the sideway channel following prior rebound from the support level at 1.1430. However, MACD which illustrate diminishing bullish momentum suggest the pair to undergo technical correction toward the support level at 1.1430.
Resistance level: 1.1480, 1.1515
Support level: 1.1430, 1.1410
USDJPY, H1: USDJPY was traded higher following prior rebound from the support level at 108.55. MACD which illustrate diminishing of bearish momentum and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 109.45.
Resistance level: 109.45, 110.25
Support level: 108.55, 107.70
AUDUSD, H1: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7150. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gain toward the resistance level at 0.7235.
Resistance level: 0.7235, 0.7300
Support level: 0.7150, 0.7100
NZDUSD, H1: NZDUSD was traded higher following prior breakout above the previous the resistance level at 0.6740. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 0.6765.
Resistance level: 0.6765, 0.6790
Support level: 0.6740, 0.6715
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.3280. However, MACD which illustrate diminishing bearish momentum suggest the pair to extend its losses toward the support level at 1.3190.
Resistance level: 1.3280, 1.3325
Support level: 1.3190, 1.3140
USDCHF, H4: USDCHF was traded higher in the sideway channel following prior rebound from the support level at 0.9790. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the channel’s top level at 0.9855.
Resistance level: 0.9825, 0.9855
Support level: 0.9790, 0.9755
CrudeOIL, H1: Crude oil was traded higher following prior breakout above the previous resistance level at 49.75. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 51.05.
Resistance level: 51.05, 52.90
Support level: 49.75, 48.35
GOLD_H1: Gold was traded higher following prior breakout above the previous resistance level at 1282.65. However, MACD which illustrate diminishing bullish momentum suggest the commodity to undergo technical correction in short term toward the support level at 1282.65.
Resistance level: 1289.70, 1296.95
Support level: 1282.65, 1277.10