18 August 2017 Daily Analysis
Fed recites cautiousness, greenback remains intimidated.
Greenback firms during early Asian trading hours on Friday, in midst of a light regional data ahead. The dollar index rose 0.08% and last seen around 93.56. Overnight, US dollar received ascends further following a pair of optimistic economic data which signals the economy to be on track for a solid third quarter growth. However, upside bias for the greenback remained limited due to dovish sentiment given by two voting Fed officials. Dallas Fed President Robert Kaplan postulate that current prices are required to hit a 2% target in the midterm in order to support for another interest rate hike. Meanwhile, Minneapolis Fed President Neel Kashkari stated that he sees no urgency to raise interest rates anytime soon. In the other region, euro stabilizes at around $1.1725 after the minutes from European Central Bank’s latest meeting quoted concerns over the strength of the single currency. In addition, policymakers also highlighted recent recovery in economy should not be taken for granted as it is still relying on a high degree of monetary policy support.
In the commodities front, crude oil price fell 0.08% to $47.05 as oversupply glut continues to linger with the backdrop of rising daily production from US. Evidently, gold price appreciates by 0.14% to $1,288.24 following dovish stance portrayed by Fed officials.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:15 USD FOMC Member Kaplan Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | CAD – Core CPI (MoM) (Jul) | 0.1% | 0.1% | – |
| 22:00 | USD – Michigan Consumer Sentiment (Aug) | 93.4 | 94.0 | – |
| 01:00 | CrudeOIL – US Baker Hughes Oil Rig Count | 768 | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level of 1.2900. However, recent formation of inverted hammer candlestick suggests short-term upside bias for GBPUSD towards the target of 1.2900.
Resistance level: 1.2900, 1.2950
Support level: 1.2850, 1.2790
EURUSD
EURUSD, H4: EURUSD remains traded within a downward channel following prior retracement from the 20-MA line (red). A successful closure below the strong support level of 1.1720 would suggest further downside bias towards the next target at 1.1650.
Resistance level: 1.1780, 1.1840
Support level: 1.1720, 1.1650
USDJPY
USDJPY, H1: USDJPY extended its losses following prior downward expansion of both moving average line after the formation of death cross. Such signal from both MA lines suggests further downside bias for USDJPY to advance towards the next target at 109.20.
Resistance level: 109.55, 109.80
Support level: 109.20, 108.70
CrudeOIL
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level of 46.45. Such price action suggests its price to extend higher in the short-term as technical correction. Otherwise, long-term trend direction is biased towards downside.
Resistance level: 47.30, 47.90
Support level: 46.45, 46.00
GOLD
GOLD_, H4: Gold price was traded higher following prior rebound from the support level of 1282.00. MACD histogram which continues to illustrate positive divergence suggests its prices to advance further up and retest at 1292.05.
Resistance level: 1292.05, 1300.00
Support level: 1282.00, 1271.90