13 March 2018 Daily Analysis
Dollar dampened over tariff threats.
Dollar index was traded lower against its major peers by 0.12% to 89.82 as of writing following ongoing investors’ concerns over the potential impact on the U.S. economy after the implementation of tariffs on steel and aluminium imports by President Donald Trump. Overnight, Greenback has failed to stand on its ground amid fears that the European Union and Japan could retaliate after expressing their reservations about the tariffs. In addition, market participants’ sentiment towards Federal Reserve to adjust its rate hikes from three times to four times was dented following reports of wage growth on last Friday that rose less than the expected reading of 0.2% rise, last stood at only 0.1%. On the contrary, EUR/USD rose by 0.18% to $1.2337 following continuing weakness of the Greenback. However, the gains of the single common currency were limited after European Central Bank (ECB) President Mario Draghi downplayed a decision to drop the easing bias while warning that increasing protectionism could pose a threat to the outlook for economic growth in the European Zone.
In the commodities market, crude oil price settled lower by 0.26% to $61.19 per barrel following fears over recent uptick crude prices above $60 could encourage U.S. shale producers to ramp up their output, undermining OPEC and non-OPEC’s effort to reduce global oversupply. Otherwise, gold price rose by 0.35% to $1324.02 a troy ounce following ongoing weakness of the dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:30 GBP Spring Forecast Statement
22:15 CAD BoC Gov Poloz Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 08:30 | AUD – NAB Business Confidence (Feb) | 12 | 9 | 9 |
| 12:30 | JPY – Tertiary Industry Activity Index (MoM) | -0.2% | -0.2% | – |
| 18:00 | EUR – German ZEW Economic Sentiment | 29.3 | – | – |
| 20:30 | USD – Core CPI (MoM) (Feb) | 0.3% | 0.2% | – |
| 20:30 | USD – CPI (MoM) (Feb) | 0.5% | 0.2% | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | 5.661M | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded higher prior gaining its support at 1.3850. MACD histogram that portrays increasing bullish momentum would suggest the pair to extend higher if breakout at the current resistance level at 1.3910 is successful.
Resistance level: 1.3910, 1.3960
Support level: 1.3850, 1.3800
EURUSD
EURUSD, H4: EURUSD was traded higher prior breaking resistance level at 1.2310. MACD histogram that portrays a golden-cross would suggest the pair to extend its gains if breakout above resistance level at 1.2345 and 200-MA line is successful.
Resistance level: 1.2345, 1.2385
Support level: 1.2300, 1.2280
USDJPY
USDJPY, H4: USDJPY was traded lower prior its failure to break resistance level at 106.80. Arrangement of bearish candlesticks and death-cross as displayed by MACD signal line would suggest the pair to extend its losses towards the support level at 106.00.
Resistance level: 106.80, 107.80
Support level: 106.00, 105.30
CrudeOIL
CrudeOIL, H4: Crude oil price was traded lower prior breaking support level at 61.30 and the commodity price is currently retesting the previous low. Death-cross as shown by MACD signal line would suggest crude oil price to extend its losses if candlesticks successfully closes below the 38.2 Fibonacci level.
Resistance level: 61.30, 62.20
Support level: 60.10, 58.20
GOLD
GOLD_, H4: Gold price was traded higher prior rebound from support level at 1316.20. Formation of pin bar candlestick and MACD signal line that portrays a golden-cross would suggest the safe-haven asset price to extend its gains towards the resistance level at 1326.80.
Resistance level: 1326.80, 1335.20
Support level: 1316.20, 1309.60