12 August 2019 Morning Session Analysis
PPI failed to provide support for dollar.
Last Friday, dollar failed to extend its gains after US release of its Producer Price Index (PPI) data. According to the US Bureau of Labor Statistics, its PPI data came in as expected at 0.2%, however acting as Fed’s crucial inflationary data measurement, the reading was unable to lower expectations of further rate cut by the Federal Reserve throughout this year. Investors reacted by further selling the dollar and enter into safe-haven gold market while they wait for further signal from this week’s Consumer Price Index (CPI) data to further gauge the inflationary status of US. With ongoing global trade tensions as well as dampening economic growth, Fed’s current interest rate level provide sufficient space for further rate cuts to support its economy. In addition to that, Fed’s recent comment on its monetary policy suggest that they are still open to further loosening depending on current economic conditions. In other news, Canada dollar was able to hold its ground against the dollar despite a poor employment data. Last Friday, Canada released its Employment Change data with a reading of -24.2K, missing economists’ expectation by a long shot at 12.5K while causing investors to sell the Loonie. However, the single currency managed to pared its losses due to the support from increasing crude oil price. As of writing, dollar index inched higher by 0.01% to 97.29 while pair of USD/CAD rose by 0.03% to 1.3225.
In the commodities market, crude oil price fell 0.24% to $54.10 per barrel after surging more than 3% last Friday. Although ongoing production cut from OPEC+ continues to provide support for oil prices, however overall sentiment for crude oil market remains cloudy as trade tensions between US and China continues to dampen global growth and spiraling uncertainties towards oil demand. Besides that, gold price inched higher by 0.01% to $1496.50 a troy ounce following ongoing uncertainties in the market.
Today’s Holiday Market Close
Time Market Event
All Day JPY Mountain Day
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the channel’s bottom level at 97.10. Due to lack of clear signal from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 97.50, 98.00
Support level: 97.10, 96.80
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.2090. MACD which display bearish bias momentum suggest the pair to extend its losses toward the support level at 1.1990.
Resistance level: 1.2090, 1.2155
Support level: 1.1990, 1.1880
EURUSD, H4: EURUSD was traded higher following prior rebound from the 20 moving average line (Red). MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.1240.
Resistance level: 1.1240, 1.1280
Support level: 1.1185, 1.1155
USDJPY, H4: USDJPY was traded lower while currently testing near the support level at 105.25. MACD which illustrate diminishing bullish momentum and the formation of death cross signal suggest the pair to extend its losses after successfully breakout below the support level at 105.25.
Resistance level: 105.60, 106.05
Support level: 105.25, 104.65
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the 20 moving average line (Red). MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.6765.
Resistance level: 0.6825, 0.6865
Support level: 0.6765, 0.6695
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.6435. MACD which display diminishing bullish momentum suggest the pair to extend its losses after successfully breakout below the support level at 0.6435.
Resistance level: 0.6490, 0.6555
Support level: 0.6435, 0.6395
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.3220. MACD which display diminishing bearish momentum suggest the pair to extend its gains after successfully breakout above the resistance level at 1.3220.
Resistance level: 1.3220, 1.3275
Support level: 1.3185, 1.3140
USDCHF, H1: USDCHF was traded lower following prior retracement from the 20 moving average line (Red). Due to lack of clear signal from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 0.9755, 0.9790
Support level: 0.9705, 0.9645
CrudeOIL, H1: Crude oil price was traded lower following prior retracement from the resistance level at 54.65. MACD which illustrate diminishing bullish momentum and the formation of death cross suggest the commodity to extend its losses toward the support level at 53.10.
Resistance level: 54.65, 55.90
Support level: 53.10, 51.15
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1507.10. MACD which illustrate bearish momentum suggest the commodity to extend its losses toward the support level at 1490.00
Resistance level: 1507.10, 1530.00
Support level: 1490.00, 1480.00