16 March 2018 Daily Analysis
Dollar bull accelerated following optimistic job data!
Dollar index was traded higher against a trade-weighted basket of major currencies, last quoted up 0.40% to 90.01 following an upbeat labor market and easing of market fears over global trade wars. Overnight, despite the release of mixed manufacturing index data, the Greenback has successfully gained on its foot after the U.S. Department of Labor reported a decline in initial jobless claims by 4,000 to a seasonally adjusted 226,000, beating the expected reading of 230,000. In addition, an optimistic market sentiment towards rate hike by Federal Reserve next week provided further support to the dollar bull. On the contrary, GBP/USD fell 0.19% to $1.3915 amid flaring of Brexit-related issues when the trio – United Kingdom, European Commission and Irish government are being reported to hold talks on the Irish-border issue which could resist smooth Brexit negotiations.
In the commodities market, crude oil price was traded steadily within key level at $61.10 after the International Energy Agengy (IEA) raised its forecast for oil demand to increase from 97.8 million bpd to 99.3 million bpd this year, but added that the commodity could be supplied at a faster rate. Otherwise, gold price extended losses by 0.20% to $1314.16 a troy ounce following dollar that regained its bullish strength yesterday.
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 Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 12:30 | JPY – Industrial Production (MoM) (Jan) | -6.6% | -6.6% | – |
| 18:00 | EUR – CPI (YoY) (Feb) | 1.2% | 1.2% | – |
| 20:30 | USD – Building Permits (Feb) | 1.377M | 1.330M | – |
| 20:30 | USD – Housing Starts (MoM) (Feb) | 9.7% | 6.0% | – |
| 20:30 | CAD – Manufacturing Sales (MoM) (Jan) | -0.3% | -0.9% | – |
| 21:15 | USD – Industrial Production (MoM) (Feb) | -0.1% | 0.3% | – |
| 22:00 | USD – JOLTs Job Openings (Jan) | 5.811M | 5.850M | – |
| 22:00 | USD – Michigan Consumer Sentiment (Mar) | 99.7 | 99.6 | – |
| 01:00 | CrudeOIL – US Baker Hughes Oil Rig Count | 796 | – | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded lower prior retracement from resistance level at 1.3950. Formation of engulfing candlestick pattern and MACD histogram that portrays ongoing bearish momentum would suggest the pair to extend its losses towards the support level at 1.3910.
Resistance level: 1.3950, 1.3980
Support level: 1.3910, 1.3860
EURUSD
EURUSD, H4: EURUSD was traded lower after breaking trend line of symmetry triangle. The pair is currently testing the support level at 1.2300. MACD histogram that portrays ongoing bearish momentum would suggest the pair to extend its losses if breakout at the said support level is successful.
Resistance level: 1.2350, 1.2400
Support level: 1.2300, 1.2250
USDJPY
USDJPY, H1: USDJPY was traded lower following its failure to break resistance by 200-MA line. MACD histogram that portrays diminishing bullish momentum would suggest the pair to extend its losses towards the support level at 105.90.
Resistance level: 106.40, 106.90
Support level: 105.90, 105.40
CrudeOIL
CrudeOIL, H4: Crude oil price was traded in consolidation within a descending triangle. An absence of obvious signals from both candlestick pattern and MACD histogram would suggest to wait for confirmation breakout before entering any trade.
Resistance level: 62.00, 63.60
Support level: 60.50, 58.80
GOLD
GOLD_, H1: Gold price was traded lower prior breaking support level at 1316.20 and the safe-haven asset is currently retesting its previous low. MACD histogram that portrays diminishing bearish momentum would suggest gold price to extend its gains if it successfully breaks the 38.2 Fibonacci level.
Resistance level: 1316.20, 1321.90
Support level: 1309.60, 1300.80