18 August 2020 Morning Session Analysis
Greenback falls after US –Sino trade deal review delayed.
Dollar index which gauges its value against a basket of six major currencies dipped amid latest round of trade deal review which originally scheduled on last Saturday has postponed due to conflict in schedule between two biggest economy bodies. In details, phrase 1 trade deal review purposed to ensure both parties are abide to the terms that has been enacted in the agreement. However, one source familiar to the trade talk revealed that the postponement was due to scheduling conflict of a representative from China and did not reflect substantive problem with the trade deal. Besides, Trump administration also wanted more time to allow China to increase their purchases on US farm goods which agreed in the deal. In the midst of Covid-19, China has started to recover from the fallout of the outbreak, hence the number of good purchased from US has also increased obviously despite it is still behind the commitment. As of now, there is no new date been selected yet from US and China after phrase 1 trade deal review has been postponed. During Asian early trading session, dollar index inched down 0.29% to 92.80.
In the commodities market, crude oil price depreciated by 0.28% to $42.75 per barrel despite China plan to ship high amount of crude oil from US. According to Reuters, Chinese state-owned oil firms have booked oil tankers to ship at least 20 million barrels of US crude for August and September. Picking up of oil demand in China boosted up the investor’s confidence toward this black commodity market. Besides, gold prices rose 0.02% to $1984.50 a troy ounce amid weakening of greenback.
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 |
| 20:30 | USD – Building Permits (Jul) | 1.258M | 1.320M | – |
| 04:30
(19th) |
CrudeOIL – API Weekly Crude Oil Stock | -4.400M | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish momentum signal suggest the dollar to extend its losses toward the support level at 92.55.
Resistance level: 94.10, 95.95
Support level: 92.55, 91.45
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the lower level. MACD which illustrate bullish bias momentum signal suggest the pair to extend its rebound toward the resistance level at 1.3150.
Resistance level: 1.3150, 1.3245
Support level: 1.3020, 1.2950
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1840. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains toward the resistance level at 1.1900.
Resistance level: 1.1900, 1.1985
Support level: 1.1840, 1.1780
USDJPY, Daily: USDJPY was traded lower following prior breakout below the previous support level at 106.15. MACD which display diminishing bullish momentum suggest the pair to extend its losses toward the support level at 105.05.
Resistance level: 106.15, 106.95
Support level: 105.05, 104.30
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7190. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 0.7235.
Resistance level: 0.7235, 0.7290
Support level: 0.7190, 0.7145
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6580. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to undergo technical correction in short term toward higher level.
Resistance level: 0.6580, 0.6755
Support level: 0.6480, 0.6380
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.3210. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into market.
Resistance level: 1.3335, 1.3505
Support level: 1.3210, 1.3045
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9050. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its rebound toward the higher level at 0.9120.
Resistance level: 0.9120, 0.9200
Support level: 0.9050, 0.8975
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 42.70. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains toward the resistance level at 43.55.
Resistance level: 43.55, 44.50
Support level: 42.70, 42.05
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1963.85. MACD which illustrate bullish bias momentum signal suggest the commodity to extend its gains toward the resistance level at 2000.00.
Resistance level: 2000.00, 2021.95
Support level: 1963.85, 1931.20