13 December 2019 Morning Session Analysis
Dollar index surged amid trade optimism
Dollar index which gauge its value against a basket of six major currencies jumped to a near two-week high yesterday amid to positive trade deal prospect between U.S. and China. President U.S Donald Trump yesterday wrote in his official Twitter account that: “Getting Very close to a BIG DEAL with China. They want it, and so we do!”. Such positive statement has spurred a very high demand for the dollar index. In addition, according to Reuters, the United States has reached a “phase-one” trade deal in principle with China, a source briefed on talks between the two nations said on Thursday. However, the gains experienced by the dollar index was limited following the bleak data from the U.S. region was released. According to U.S Bureau of Labor Statistics, U.S. Producer Price Index (PPI) for the last month notched down from 0.4% to 0.0%, weaker than the economist forecast at 0.2%. Meanwhile, the U.S. Core Producer Price Index (PPI) for last month came in at -0.2%, worse than the market forecast at 0.2%. Such negative data had dialled down the market optimisms toward economic progression in the United States, spurring some sell-off for the greenback. However, at this time investors would continue to scrutinize the latest updates with regards of trade wars and U.S. economic data in order to gauge the likelihood movement for the dollar index. As of writing, dollar index depreciated by 0.35% to 97.20 while GBP/USD surged 2.37% to 1.3473 following the polls suggested a win for Conservatives Party, which enhancing the positive prospect for the soft-Brexit.
In the commodities market, crude oil price surged 0.37% to $59.42 per barrel. Oil price edged higher as market participants expected the resolution of trade war may improve the global economic growth and the demand towards the commodity. On the other hand, gold price slumped 0.31% to $1464.50 per troy ounces amid to trade optimism news.
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 |
| 21:30 | US – Core Retail Sales (MoM) (Nov) | 0.2% | 0.4% | – |
| 21:30 | US – Retail Sales (MoM) (Nov) | 0.3% | 0.5% | – |
| 02:00 (14th Dec) | CrudeOIL – U.S. Baker Hughes Oil Rig Count | 663 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 97.35. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 97.35, 97.55
Support level: 97.15, 96.95
GBPUSD, Daily: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3320. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3615.
Resistance level: 1.3615, 1.3880
Support level: 1.3320, 1.3010
EURUSD, Daily: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1165. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.1220.
Resistance level: 1.1220, 1.1285
Support level: 1.1165, 1.1080
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 109.45. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 109.45, 109.95
Support level: 108.95, 108.45
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance level at 0.6925. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6925, 0.6985
Support level: 0.6870, 0.6810
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6600. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6660.
Resistance level: 0.6660, 0.6720
Support level: 0.6600, 0.6540
USDCAD, Daily: USDCAD was traded lower following prior breakout below the previous support level at 1.3200. MACD which illustrated bearish momentum suggest the pair to extend its losses toward support level at 1.3140.
Resistance level: 1.3200, 1.3265
Support level: 1.3140, 1.3065
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9870. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9870, 0.9900
Support level: 0.9840, 0.9810
CrudeOIL, Daily: Crude oil price was traded higher following prior breakout above the previous resistance level at 58.85. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 60.70, 62.00
Support level: 58.85, 57.35
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1473.80. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 1461.50.
Resistance level: 1473.80, 1484.25
Support level: 1461.50, 1451.35