17 July 2020 Morning Session Analysis
Positive economic data, sparkling demand for Greenback.
Dollar index surged over the backdrop of the string of positive economic data from the United States region on yesterday. According to Federal Reserve Bank of Philadelphia, the U.S. Philadelphia Fed Manufacturing Index came in at 24.1, which confounding market forecast for a reading up to 20.0. Besides, Census Bureau reported that the U.S. Core Retail Sales for last month came in 7.3%, which also higher than the market forecast at 5.0%. As both data fared better than expectation, which dialled up the market optimism toward the economic progression in the United States while sparkling demand for the US Dollar. Nonetheless, the gains experienced by the dollar index was limited amid higher-than-forecast U.S. Weekly Jobless Claims stoked fears over whether the recent strength in the labour market was losing steam. According to Department of Labor, the U.S. Initial Jobless Claims came in at only 1,300K, missing the market forecast at 1,250K. Besides, spiking number of the coronavirus infections had also limited the further gains experienced by the US Dollar as the coronavirus infections has forced California and other states to shut down again, spurring fears the U.S. economy will continue to suffer. As of writing, the dollar index appreciated by 0.23% to 96.21.
In the commodities market, the crude oil price slumped 0.32% to $40.89 per barrel as of writing following the Organization of the Petroleum Exporting Countries (OPEC) rollback 20% of production cuts that they had maintained since the early of May. On the other hand, the gold price slumped 0.08% to $1798.35 per troy ounces amid strengthening US Dollar.
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 |
| 14:00 | GBP – Retail Sales (MoM) (Jun) | 12.0% | – | – |
| 17:00 | EUR – CPI (YoY) (Jun) | 0.3% | 0.3% | – |
| 20:30 | USD – Building Permits (Jun) | 1.216M | 1.280M | – |
| 22:00 | USD – Michigan Consumer Sentiment (Jul) | 78.1 | 79.0 | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 95.85. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 97.55, 98.85
Support level: 95.85, 94.70
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.2670. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2670, 1.2800
Support level: 1.2515, 1.2340
EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level at 1.1410. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1410, 1.1485
Support level: 1.1305, 1.1175
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 107.40. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 107.35, 107.95
Support level: 106.75, 106.40
AUDUSD, H4: AUDUSD was traded within a range while currently testing the resistance level at 0.7020. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7020, 0.7180
Support level: 0.6810, 0.6610
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6575. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6510.
Resistance level: 0.6575, 0.6635
Support level: 0.6510, 0.6465
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3555. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3630.
Resistance level: 1.3630, 1.3685
Support level: 1.3555, 1.3510
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9435. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9470, 0.9530
Support level: 0.9435, 0.9375
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 41.40. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 39.35.
Resistance level: 41.40, 43.00
Support level: 39.35, 37.60
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1817.20. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1789.60.
Resistance level: 1817.20, 1845.10
Support level: 1789.60, 1764.75