16 August 2018 Daily Analysis
Dollar retreats amid data release of US Retail Sales.
The dollar index has retreated from a previous high and current sentiment is now coupled with the Retail Sales data release. According the US Census Bureau, the retail rate of consumer items for June has given a positive reading with an increase of 0.5%, which is higher than market expectations with the reading of 0.1%. In addition, dollar sentiment remains stimulated by the weaknesses in the Eurozone, which has been pressured by fears of European banks’ exposure to Turkey as well as increasing expectations of interest rates for September. All these factors have confirmed the dollar sentiment remain subjected to a bullish momentum for long term. The dollar index has slipped 0.03% to 96.40 as of writing. Meanwhile, GBPUSD has rose 0.17% to 1.2704 at the time of writing following the release of inflation data which have met expectations overnight. According to National Statistics from the UK, UK CPI data which measures the rate of expenditure on goods and services in the country has also increased by 2.5% from the previous data with a reading of 2.4%, which also in line with market expectations. However, the sentiment for the pound remains offset by the ongoing fears in the country for the Brexit plan where it is likely to fail to achieve any trade agreement.
In the commodity market, crude oil prices have recovered by 0.31% to $65.06 per barrel from a sharp drop yesterday after data on Crude Oil Inventories posted an increase of 6.8 million barrels last week, missed from expectations for a decrease of 2.4 million barrels. On the other hand, Gold prices have plummeted 0.45% to $ 1169.62 per troy ounce following the strength of the dollar driven by positive economic data 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 |
| 16.30 | GBP – Retail Sales (MoM) (Jul) | -0.5% | 0.2% | – |
| 20.30 | USD – Building Permits (Jul) | 1.292M | 1.310M | – |
| 20.30 | USD – Philadelphia Fed Manufacturing Index (Aug) | 25.7 | 21.9 | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded higher following recent breakout above the resistance level 1.2695. Recent price action and MACD which illustrate bullish momentum with golden cross formation suggest the pair to extend its technical correction towards resistance level 1.2735.
Resistance level: 1.2735, 1.2785
Support level: 1.2695, 1.2665
EURUSD
EURUSD, H1: EURUSD was traded higher following recent breakout above the resistance level 1.1365. Recent price action and MACD which display clear bullish momentum suggest the pair may extend its gains towards resistance level 1.1440.
Resistance level: 1.1440, 1.1485
Support level: 1.1365, 1.1300
USDJPY
USDJPY, H1: USDJPY was traded higher following prior breakout above the resistance level 110.75. MACD which indicate diminished bearish signal also with golden cross formation suggest the pair to extend its gains towards resistance level 111.10
Resistance level: 111.10, 111.45
Support level: 110.75, 110.45
CrudeOIL
CrudeOIL, H1: The price of crude oil was traded higher following prior rebound form the support level 64.60. MACD which illustrate diminished bearish signal and golden cross formation suggest the pair to experience a technical correction towards resistance level 65.70.
Resistance level: 65.70, 66.30
Support level: 64.60, 63.55
GOLD
GOLD_, H1: Gold price was traded higher following recent rebound from the support level 1166.00. MACD which illustrate diminished bearish bias signal suggest the pair may extend its rebound towards the resistance level 1177.00
Resistance level: 1177.00, 1185.00
Support level: 1166.00, 1155.00