18 May 2021 Morning Session Analysis
Greenback wilts as sentiment sours.
US dollar extended its losses following the release of bearish economic data from last Friday. As of writing, the dollar index notched down 0.03% to 90.15 during Asian trading session. Last Friday, Retail Sales data for the month of April shows significant slump in terms of consumer spending despite government’s effort of introducing a new round of economic stimulus earlier this year. The data has dialed down market expectation for a speedy economic driver which may drive up inflation in a short period of time. On yesterday, Fed official Raphael Bostic commented that the Federal Reserve will monitor the economy and evaluate whether the current economic momentum is up to their expectations. Likewise, Bostic also emphasized that any changes in monetary policy would require substantial stabilization in terms of all aspect of economy which includes inflation and employment market. The signal delivered by Bostic has further cemented Federal Reserve previous view to keep loose monetary policy intact in order to provide ample support for economic recovery.
In the commodities market, crude oil price rose 0.15% to $66.27 per barrel. On yesterday, Israel has launched missile strikes towards the southern region of Gaza despite global calls for a halt in escalating tensions further. Rising tension in between Israel and Gaza may disrupt oil supply in the region which in return, provide support for global oil prices in short-term. On the other hand, gold price rose 0.01% to $1,865.97 a troy ounce due to weaker US 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 | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Average Earnings Index +Bonus (Mar) | 4.5% | 4.6% | – |
| 14:00 | GBP – Claimant Count Change (Apr) | 10.1K | – | – |
| 20:30 | USD – Building Permits (Apr) | 1.759M | 1.770M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from previous high. MACD which illustrated formation of bearish momentum suggest the index to extend its losses after breaking the support level at 90.00.
Resistance level: 90.20, 90.45
Support level: 90.00, 89.70
GBPUSD, H4: GBPUSD was traded higher following prior rebound from lower level. MACD which illustrated the formation of bullish momentum suggest the pair to extend its gains towards the direction of 1.4170.
Resistance level: 1.4170, 1.4240
Support level: 1.4100, 1.4020
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.2125. MACD which illustrated the formation of bullish signal suggest the pair to extend its gains after closing above 1.2175.
Resistance level: 1.2175, 1.2230
Support level: 1.2125, 1.2070
USDJPY, H1: USDJPY was traded higher while currently testing the resistance level at 109.25. MACD which illustrated bullish momentum suggest the pair to be traded higher in short-term after breaking the resistance level.
Resistance level: 109.25, 109.45
Support level: 109.00, 108.65
AUDUSD, H4: AUDUSD was traded higher following prior rebound from lower level. MACD which illustrated upward momentum suggest the pair to be traded higher in short-term.
Resistance level: 0.7805, 0.7850
Support level: 0.7755, 0.7700
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.7190. MACD which illustrated bullish momentum suggest the pair to be traded higher in short-term.
Resistance level: 0.7240, 0.7280
Support level: 0.7190, 0.7145
USDCAD, H4: USDCAD was traded lower following a breakout at the support level at 1.2080. MACD which illustrated bearish signal suggest the pair to be traded lower in short-term, towards the direction of 1.2010.
Resistance level: 1.2080, 1.2180
Support level: 1.2010, 1.1900
USDCHF, H1: USDCHF was traded higher following a rebound from the lower level. MACD which shows the formation of bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9045, 0.9065
Support level: 0.9025, 0.9000
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the lower level. MACD which illustrated bullish momentum suggest the commodity to extend its gains after breaking the resistance level at 66.50.
Resistance level: 66.50, 67.60
Support level: 65.50, 64.40
GOLD_, H4: Gold price was traded higher following prior breakout at the resistance level of 1863.25. MACD which illustrate bullish momentum suggest the commodity to extend its gains towards the direction of 1880.00.
Resistance level: 1880.00, 1895.00
Support level: 1863.25, 1845.00