18 July 2018 Daily Analysis
Powell unwinds dollar-bears with hawkish rhetoric.
Dollar-bulls invigorates during North American trading session on yesterday after Federal Reserve Chair Jerome Powell gave lawmakers a rather optimistic assessment with regards to US economy and expecting to follow through their plans to raise interest rates gradually. The dollar index was quoted up 0.50%, last seen around 94.68 during early Asian trading hours. During his semi-annual testimony to the Congress, Powell postulate that the “best way forward” is to continue raising interest rates as job market continues to strengthen while inflation moved above Fed’s target of 2%. Likewise, Powell also echoed Fed’s recent comment in meeting minutes, hinting two more interest hike for second half of the year. For now, investors will place their attention upon Powell’s testimony before the House Financial Services Committee tonight which may offer further clues with regards to future monetary policy. In the other region, pair of GBP/USD slipped 0.03% to $1.3106 as Prime Minister Theresa May’s Brexit bill may face another challenge in the Parliament.
In the commodities market, crude oil price tacks up 0.18% to $67.75 per barrel following higher speculation among investors that tonight’s US crude oil inventories report may show yet another weekly draw. On the other hand, gold price stumbled down 0.95% to $1,227.37 a troy ounce following hawkish rhetoric from Fed Chair Jerome Powell.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 USD Fed Chair Powell Testifies
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – CPI (YoY) (Jun) | 2.4% | 2.6% | – |
| 17:00 | EUR – CPI (YoY) (Jun) | 2.0% | 2.0% | – |
| 20:30 | USD – Building Permits (Jun) | 1.301M | 1.330M | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -12.633M | -3.622M | – |
| 22:30 | CrudeOIL – Gasoline Inventories | -0.694M | -0.044M | – |
GBPUSD
GBPUSD, H1: GBPUSD extended its losses following prior breakout from the support level of 1.3130. However, MACD histogram which illustrate diminishing downward momentum suggests the pair to be traded higher in short-term as technical correction before continuing its bearish trend.
Resistance level: 1.3130, 1.3180
Support level: 1.3070, 1.3000
EURUSD
EURUSD, H1: EURUSD was traded lower following prior breakout from the support level of 1.1680. However, MACD histogram which illustrate diminishing downward momentum may suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1680, 1.1715
Support level: 1.1645, 1.1620
USDJPY
USDJPY, H1: USDJPY extended its gains following prior breakout from the strong resistance near 112.60. MACD histogram which begins to form a bullish crossover suggests the pair to extend its gains, towards the direction of resistance level at 113.25.
Resistance level: 113.25, 114.15
Support level: 112.60, 112.10
CrudeOIL
CrudeOIL, H4: Crude oil price was traded in a consolidation phase following prior breakout from the support level of 67.90. As MACD histogram has begins to form a bullish crossover, the commodity price may be traded higher in short-term as technical correction before extending its major bearish trending.
Resistance level: 67.90, 69.30
Support level: 65.90, 64.70
GOLD
GOLD_, H1: Gold price was traded lower following prior breakout from the bottom level of sideways channel. However, MACD histogram which illustrate diminishing downward momentum suggests the commodity price to be traded higher in short-term as technical correction before extending its bearish trending.
Resistance level: 1233.70, 1238.40
Support level: 1226.50, 1220.20