18 July 2017 Daily Analysis
Greenback relinquished as Trumpcare fades.
US dollar received notable selling pressure on Tuesday following reports that US Republican Senate has rejected President Donald Trump’s healthcare bill yet again. The healthcare bill was largely seen as a litmus test for Trump’s legislative ability and its recent failure signals that he may have a hard time to push through the much-awaited tax and fiscal reforms. The report came into light after previous series of data which has suggested a slowdown in the pace of inflation which may hinder US Federal Reserve from hiking its interest rates this year. Consequently, the dollar index sheds 0.33% and last seen at 94.54 against a basket of six major currencies. In the other region, kiwi was threaded lower following the release of latest inflation reading. For the second quarter, Consumer Price Index (CPI) remained flat, undershooting economist expected rise of 0.2%. The weaker-than-expected data sparks some sell-off on the kiwi, with NZD/USD down 0.20% to 0.7304.
In the commodities market, crude oil price rose 0.24% to $46.13 while investors keep an eye on the latest US stockpiles report. Similarly, gold price was up 0.38% to $1,237.54 following investors plight from dollar-bearing assets due to diminishing confidence on Trump’s administration.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Event
Time Market Event
09:30 AUD RBA Meeting Minutes
21:30 GBP BoE Gov Carney Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 06:45 | NZD – CPI (QoQ) (Q2) | 1.0% | 0.2% | 0.0% |
| 16:30 | GBP – CPI (YoY) (Jun) | 2.9% | 2.9% | – |
| 17:00 | EUR – German ZEW Economic Sentiment (Jul) | 18.6 | 18.0 | – |
| 20:30 | USD – Import Price Index (MoM) (Jun) | -0.3% | -0.2% | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | -8.130M | – | – |
GBPUSD
GBPUSD, H1: GBPUSD extended gains following prior rebound from the strong support level of 1.3050. Recent closure above the 20-MA (red) suggest GBPUSD to advance towards the target of resistance level at 1.3110.
Resistance level: 1.3110, 1.3165
Support level: 1.3050, 1.2990
EURUSD
EURUSD, H4: EURUSD has recently broke out from the top level of upward channel, signaling a change in trend direction to move further upwards. A breakout from the resistance level of 1.1550 would further suggest the upside bias for EURUSD.
Resistance level: 1.1550, 1.1600
Support level: 1.1485, 1.1420
NZDUSD
NZDUSD, H1: NZDUSD skyrocketed following prior rebound from the 61.8 Fibonacci level at 0.7265 while currently testing near the resistance level of 0.7345. A successful closure above the level of 0.7345 would suggest NZDUSD to advance towards the next target at 0.7365.
Resistance level: 0.7345, 0.7365
Support level: 0.7325, 0.7300
USDJPY
USDJPY, H4: USDJPY extended its losses following prior breakthrough from the support level of 112.30. Both MA lines which continues to expand further downwards suggests further downside bias towards the next target at 111.65.
Resistance level: 112.30, 113.15
Support level: 111.65, 111.00
CrudeOIL
CrudeOIL, H1: Crude oil price remains traded within an upward channel following prior rebound from the support level of 46.15. A closure above the resistance level of 46.50 would suggest crude oil price to extend its gains towards the upper level of the channel.
Resistance level: 46.50, 46.90
Support level: 46.15, 45.65
GOLD
GOLD_, H4: Gold price extended gains following prior rebound from the support level of 1230.00. Both MA lines which has formed a golden cross previously suggests further upside bias for gold price towards the target of resistance level at 1240.20
Resistance level: 1240.20, 1246.75
Support level: 1230.00, 1220.00