14 January 2020 Afternoon Session Analysis
Dollar plunged amid sign of trade tensions eased.
Dollar index which gauges its value against a basket of six major currencies notched down after US made a decision to remove ‘currency manipulator’ label from China yesterday. Back then, US President Donald Trump accused that China certainly devalued its currency in order to boost up the appeal of China Yuan, in an attempt to lift up their exports and support their economy growth. Devaluation of China Yuan has surprised the market, irritated Trump as it broke the origin of competitive advantage while dragged down the appearance of other currencies. Whatsoever, it is believingly that the removal of label from China will further ease the tensions between US and China ahead of the trade agreement that scheduled on later this week. As of writing, dollar index inched up 0.04% to 97.35. On the other hand, the pair of USD/CAD fall 0.04% to 1.3050 after winter Business Outlook Survey which released by Bank of Canada (BoC) indicated that Canada business sector is expanding at a steady pace while future outlook of domestic and foreign sales remain fragrant. Therefore, the inflation expectation in Canada is expected to be unchanged while leading to and further concreted the view of investor that BOC will not continue to adopt expanding monetary policy in the upcoming interest rate decision meeting.
In the commodities market, the crude oil price notched up 0.19% to $58.15 per barrel amid easing of trade tensions between US and China has lifted up the market expectation toward the global demand on this black commodity. Moreover, gold prices dived 0.52% to $1539.80 a troy ounce amid alleviation of trade tension elevated market risk-on sentiment.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:30 | USD – Core CPI (MoM) (Dec) | 0.2% | 0.2% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded flat while currently testing near the support level 96.95. However, MACD which illustrate bearish momentum signal with the recent formation of death cross suggest the dollar to be traded lower after it breaks below the support level.
Resistance level: 97.40, 98.20
Support level: 96.95, 96.45
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.2965. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction in short term towards the resistance level 1.3095.
Resistance level: 1.3095, 1.3225
Support level: 1.2965, 1.2830
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1105. MACD which illustrate bullish momentum signal suggest the pair to extend its gains towards the resistance level 1.1175.
Resistance level: 1.1175, 1.1250
Support level: 1.1105, 1.1045
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance level 110.20. However, MACD which illustrate diminishing bullish momentum suggest the pair to be traded lower as a technical correction towards the support level 109.70.
Resistance level: 110.20, 110.65
Support level: 109.70, 109.25
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level 0.6885. MACD which display bearish bias signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.6930, 0.6990
Support level: 0.6885, 0.6845
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level 0.6650. MACD which illustrate bearish momentum signal with the starting formation of death cross suggest the pair to extend its retracement towards the support level 0.6555.
Resistance level: 0.6650, 0.6740
Support level: 0.6555, 0.6500
USDCAD, H4: USDCAD was traded flat while currently testing the resistance level 1.3065. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher after it breaks above the resistance level.
Resistance level: 1.3065, 1.3125
Support level: 1.3010, 1.2945
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level 0.9725. MACD which illustrate bearish momentum signal suggest the pair to extend its retracement towards the support level 0.9650.
Resistance level: 0.9725, 0.9780
Support level: 0.9650, 0.9590
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level 57.75. However, MACD which illustrate diminishing bearish momentum signal suggest the commodity to be traded higher as a short term technical correction towards the resistance level 59.55.
Resistance level: 59.55, 61.05
Support level: 57.75, 56.30
GOLD_, H4: Gold price was traded lower while currently testing the support level 1542.15. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses after it breaks below the support level.
Resistance level: 1561.90, 1613.35
Support level: 1542.15, 1523.25