18 March 2019 Morning Session Analysis
Greenback extend losses amid poor data and Brexit highlights.
Dollar index measuring against a basket of six major currencies plunged by 0.30% before closing Friday’s market at 96.49 amid poor Industrial Production and NY Empire State Manufacturing Index data. With a slowdown in manufacturing index of 3.7 compared to 10.0 and poor factory output of 0.1% compared to 0.4%, investors shifted their portfolio towards riskier market mainly pound. Last week, UK Parliament undergo 3 important votes which resolved in the extend of 29th March Brexit date and lawmakers are now struggling with UK Prime Minister Theresa May motion for a third vote towards her Brexit deal. With hard-Brexit out of the picture, investors are motivated into investing in the pound, extending the pair of GBP/USD gains by 0.03% to 1.3293.
For the commodities market, crude oil price retraced from its 3 months high by 0.15% to $58.43 per barrel. Recent efforts from OPEC glut cut and US sanctions on Venezuela and Iran oil continues to push oil prices higher. Further boosting the oil market was low inventory data reported by API and EIA and also the reduction of 1 oil rig as reported by US Baker Hughes. Likewise, gold price extended its gains by 0.47% to $1302.23 per troy ounce following weak dollar.
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 Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 12.30 | JPY – Industrial Production (MoM) (Jan) | -3.7% | -3.7% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing near the support level 96.40. MACD which display bearish momentum suggest the dollar to extend its losses after it breaks below the support level.
Resistance level: 96.90, 97.15
Support level: 96.40, 96.05
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level 1.3250. MACD which illustrate bullish bias signal suggest the pair to extend its gains towards the resistance level 1.3350.
Resistance level: 1.3350, 1.3475
Support level: 1.3250, 1.3180
EURUSD, H4: EURUSD was traded in a sideway channel following recent retracement from the resistance level 1.1340. However, MACD which illustrate bearish momentum with the starting formation of death cross suggest the pair to extend its retracement towards the support level 1.1295 in short term.
Resistance level: 1.1340, 1.1395
Support level: 1.1295, 1.1260
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level 111.75.MACD which display bearish momentum signal with the formation of death cross suggest the pair to extend its retracement towards the support level 111.10.
Resistance level: 111.75, 112.10
Support level: 111.10, 110.35
AUDUSD, H4: AUDUSD was traded flat following recent retracement from the resistance level 0.7085. However, MACD which illustrate bearish bias signal with the starting formation of death cross suggest the pair to extend its retracement towards the support level 0.7050 in short term.
Resistance level: 0.7085, 0.7130
Support level: 0.7050, 0.7005
NZDUSD, H4: NZDUSD was traded lower following recent retracement from its high levels. MACD which illustrate bearish momentum suggest the pair to extend its retracement towards the support level 0.6815.
Resistance level: 0.6875, 0.6905
Support level: 0.6815, 0.6770
USDCAD, H4: USDCAD was traded higher following recent breakout above the previous resistance level 1.3315. MACD which illustrate bullish momentum with the formation of golden cross suggest the pair to extend its gains towards the resistance level 1.3375.
Resistance level: 1.3375, 1.3440
Support level: 1.3315, 1.3260
USDCHF, H4: USDCHF was traded lower following recent breakout below the previous support level 1.0025. However, MACD which illustrate diminishing bearish momentum suggest the pair to undergo a short term technical correction and rebound above the resistance level 1.0025.
Resistance level: 1.0025, 1.0055
Support level: 0.9975, 0.9915
CrudeOIL, H4: Crude oil price was traded higher following recent rebound from the MA line 20 (Red). MACD which illustrate bullish bias signal suggest the commodity to extend its gains towards the resistance level 59.20.
Resistance level: 59.20, 61.25
Support level: 57.50, 55.60
GOLD_, H4: Gold price was traded lower following recent retracement from the resistance level 1305.65. However, due to lack of momentum from MACD, a breakout above the nearest resistance level or support level is required to attain further confirmation.
Resistance level: 1305.65, 1315.05
Support level: 1299.15, 1289.35