11 January 2019 Afternoon Session Analysis
Fed sleeps, dollar tips.
Australian dollar extended its gains during mid-Asian trading session amid heightened optimism for a resolution of trade war between the United States and China. According to Reuters, US Treasury Secretary Steven Mnuchin mentioned that there are possible plans for top Chinese trade envoy Liu He to travel to the United States later this month. The report suggests for a possible higher-level talk which may cultivate broader resolution inclusiveness for both countries. Following the report, market participants continues to buy-in at riskier assets while flocking away from the greenback market. In addition, the Australian currency was further supported after Retail Sales for the month of November came in higher than expected with 0.4% versus forecast of 0.3%. On the other hand, US dollar remains subdued following “dovish” signals given by Fed Chair Jerome Powell. Powell reiterated on Thursday that the US central bank has the ability to be “patient” with regards to monetary policy as long as current inflation level remains stable. Traders were taken aback by his comments as it suggests for a pause in monetary policy tightening. As of writing, the dollar index was down 0.22% to 94.85 while pairing of AUD/USD rose 0.47% to 0.7219.
In the commodities market, crude oil price gained 0.38% to $52.40 per barrel following the release of hawkish news with regards to US-China trade talks. On the other hand, gold price appreciates by 0.46% to $1,292.37 a troy ounce amid weaker dollar.
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 | Market & Data | Previous | Forecast | Actual |
| 17:30 | GBP – GDP (MoM) | 0.1% | 0.1% | – |
| 17:30 | GBP – Manufacturing Production (MoM) (Nov) | -0.9% | 0.4% | – |
| 21:30 | USD – Core CPI (MoM) (Dec) | 2.2% | 2.2% | – |
| 02:00(12th) | USD – US Baker Hughes Oil Rig Count | 877 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the 20-MA line (red). MACD which illustrate diminished upward momentum suggests the index to be traded lower, towards the target of 94.60.
Resistance level: 95.00, 95.50
Support level: 94.60, 94.15
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the bottom level of ascending triangle. MACD which illustrate bullish signal suggests the pair to extend its gains in short-term, towards the direction of 1.2800.
Resistance level: 1.2800, 1.2860
Support level: 1.2760, 1.2630
EURUSD, H1: EURUSD was traded higher following prior rebound from the upward trendline. MACD which illustrate bullish signal suggests the pair to advance further upwards, towards the direction of 1.1590.
Resistance level: 1.1590, 1.1640
Support level: 1.1520, 1.1480
USDJPY, H1: USDJPY was traded lower following prior retracement from the downward trendline. MACD which begins to form a death cross signal suggests the pair to advance further downwards after a successful close below the 20-MA line (red).
Resistance level: 108.40, 109.60
Support level: 107.75, 106.75
AUDUSD, H4: AUDUSD was traded higher following prior closure above 0.7145. MACD which begins to form a golden cross signal suggests the pair to extend its gains, towards the direction of 0.7255.
Resistance level: 0.7255, 0.7330
Support level: 0.7145, 0.7070
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support of 0.6780. MACD which illustrate persistent bullish signal suggests the pair to extend its gains, towards the direction of 0.6840.
Resistance level: 0.6840, 0.6890
Support level: 0.6780, 0.6710
USDCAD, H4: USDCAD was traded lower following prior retracement from the 20-MA line (red). MACD which illustrate diminished upward momentum suggests the pair to advance further downwards, towards the direction of 1.3170.
Resistance level: 1.3220, 1.3270
Support level: 1.3170, 1.3120
USDCHF, H4: USDCHF was traded lower following prior retracement from the downward trendline. MACD which illustrate diminished upward momentum suggests the pair to advance further down, in tandem with current bearish trend.
Resistance level: 0.9835, 0.9905
Support level: 0.9765, 0.9710
CrudeOIL, Daily: Crude oil price extended gains while currently testing at the resistance level of 52.75. MACD which illustrate the formation of bullish signal suggests its prices to advance further up, after closing above 52.75.
Resistance level: 52.75, 55.55
Support level: 50.50, 48.30
GOLD_, H1: Gold price remains traded within a sideways channel while currently rebounded from the lower level. MACD which illustrate bullish signal suggests its prices to advance further up, towards the direction of 1297.00.
Resistance level: 1297.00, 1303.00
Support level: 1284.35, 1280.00