14 July 2017 Daily Analysis
Yellen haunts the dollar, inflation resonate its momentum.
US dollar stabilizes on Friday against other major currencies while Fed Chair Janet Yellen’s testimony which did not sound as hawkish as many had anticipated continued to cap its gains. The dollar index ticked up 0.05% to 95.55 as of writing. “The US economy is healthy enough for the Fed to raise interest rates and winding down its massive bond portfolio, though low inflation may leave the central bank with diminished leeway,” said Yellen at her semi-annual appearance before the Congress. Economist postulate that the overall speech sounded dovish but mainly due to her attempt to address various concerns at once. “Our data suggests that US inflation is picking up again and the Fed appears to still be in a position to continue hiking interest rates.” Said Bart Wakabayashi, branch manager for State Street Bank and Trust in Tokyo. Otherwise, Australian dollar continues to march further following higher commodity prices and a weaker dollar. Pairing of AUD/USD was up 0.12% to near four-months high of $0.7740.
Otherwise, crude oil price was down 0.13% to $46.02 a barrel while investors will be eyeing on US Baker Hughes report on active oil rigs for further drilling activity signals. Likewise, gold price sheds 0.06% to $1,215.55 as dollar regains some traction during Asian trading hours.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Core CPI (MoM) (Jun) | 0.1% | 0.2% | – |
| 20:30 | USD – Core Retail Sales (MoM) (Jun) | -0.3% | 0.2% | – |
| 20:30 | USD – Retail Sales (MoM) (Jun) | -0.3% | 0.1% | – |
| 21:15 | USD – Industrial Production (MoM) (Jun) | 0.0% | 0.3% | – |
| 22:00 | USD – Michigan Consumer Sentiment (Jul) | 95.1 | 95.0 | – |
| 01:00 | Crude Oil – US Baker Hughes Oil Rig Count | 763 | – | – |
GBPUSD
GBPUSD, H4: GBPUSD has recently broke out from the top level of downward channel, signaling a change in trend direction to move further upwards. MACD histogram which illustrate substantial upward signal suggests GBPUSD to advance further up towards the resistance level of 1.2970.
Resistance level: 1.2970, 1.3030
Support level: 1.2925, 1.2860
EURUSD
EURUSD, H4: EURUSD has recently broke out from the bottom level of upward channel, signaling a change in trend direction to move further downwards. MACD indicator which shows diminishing upward momentum suggest further bearish pressure for EURUSD after closing below the support level of 1.1385.
Resistance level: 1.1440, 1.1480
Support level: 1.1385, 1.1330
AUDUSD
AUDUSD, H4: AUDUSD has recently closed above the top level of upward channel, signaling a change in trend direction to extend further upwards. A successful closure above the resistance level of 0.7750 would suggest AUDUSD to advance further up.
Resistance level: 0.7750, 0.7800
Support level: 0.7700, 0.7660
USDJPY
USDJPY, H1: USDJPY was traded lower following prior inability to close above the strong resistance level at 113.50. A strong selling pressure from this level suggests USDJPY to be traded lower in short-term towards the direction of support level at 113.25.
Resistance level: 113.50, 113.65
Support level: 113.25, 112.85
CrudeOIL
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the top level of the narrowing triangle. Recent retracement suggests crude oil price to be traded lower in short-term and heading towards the support level of 45.30.
Resistance level: 46.15, 47.30
Support level: 45.30, 44.65
GOLD
GOLD_, H4: Gold price was traded lower following prior retracement from the 60-MA line (green). Recent closure below the 20-MA line (red) suggest gold price to extend its losses towards the target of support level at 1207.00.
Resistance level: 1220.00, 1230.00, 1240.70
Support level: 1207.00, 1197.00