17 August 2020 Morning Session Analysis
Dollar sinks following the release of mixed economic data.
Dollar index which gauges its value against a basket of six major currencies was having mixed pattern last Friday as mixed data from US region exerted unclear momentum toward the dollar market. According to the Census Bureau, US Retail Sales data increased by only 1.2% for the month of July, far weaker than the economist forecast at 1.9%. Besides, the another important indicator of current economy health condition Core Retail Sales data came in at 1.9%, unexpectedly stronger than the economist forecast at 1.3%, yet still showing some weakness and vulnerability of economy while comparing to the previous month reading amid spiralling new Covid-19 infections and reduction of unemployment checks. On the US stimulus plan front, both biggest parties in US are still entangled in a deadlock, where the new round of stimulus package unable to be released in the meantime. Republicans and Democrats are trillions of dollar apart over the details of relief package and showed no intention of further trade talk for nearly a week. Hence, investors now continue to eyes on the further negotiation between these two parties in order to scrutinize the direction of greenback. As of writing, dollar index dropped 0.02% to 93.05.
In the commodities market, crude oil price appreciated by 0.64% to $42.60 per barrel amid heightening of market hopes over the recovery of demand in oil market. Besides, reduction in the number of US Baker Hughes oil rig also indicating that the supply of oil still in decreasing path, which provided some support toward the price of this black commodity. Besides, gold price inched down 0.01% to $1944.35 a troy ounce as market risk sentiment heightened.
Today’s Holiday Market Close
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Today’s Highlight Events
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Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish momentum signal suggest the dollar to extend its losses toward the support level at 92.55.
Resistance level: 94.10, 95.95
Support level: 92.55, 91.45
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the lower level. MACD which illustrate bullish bias momentum signal suggest the pair to extend its rebound toward the resistance level at 1.3150.
Resistance level: 1.3150, 1.3245
Support level: 1.3020, 1.2950
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1840. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1840, 1.1900
Support level: 1.1780, 1.1705
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 106.95. MACD which display bearish bias momentum suggest the pair to extend its losses toward the support level at 106.15.
Resistance level: 106.95, 107.90
Support level: 106.15, 105.05
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7190. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 0.7190.
Resistance level: 0.7190, 0.7235
Support level: 0.7145, 0.7110
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6580. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 0.6480.
Resistance level: 0.6580, 0.6755
Support level: 0.6480, 0.6380
USDCAD, Daily: USDCAD was traded higher following prior rebound from the support level at 1.3210. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into market.
Resistance level: 1.3335, 1.3505
Support level: 1.3210, 1.3045
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9120. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher in short term toward the resistance level at 0.9120.
Resistance level: 0.9120, 0.9200
Support level: 0.9050, 0.8975
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 42.10. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 42.90.
Resistance level: 42.90, 43.55
Support level: 42.10, 41.15
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1963.85. MACD which illustrate diminishing bullish momentum signal suggest the commodity to extend its losses toward the support level at 1931.20.
Resistance level: 1963.85, 2000.00
Support level: 1931.20, 1900.50