18 December 2019 Afternoon Session Analysis
Dollar index surged amid to positive data from U.S region.
Dollar index edged higher following the optimistic data from the United States regions were released. According to Census Bureau, U.S. Building Permits for last month notched up from 1.461M to 1.482M, exceeding the economist forecast at 1.410M. In addition, U.S. JOLTs Job Openings came in at 7.267M, fared better than the market forecast at 7.018M, reported by Bureau of Labor Statistics. Meanwhile according to Federal Reserve, U.S. Industrial Production for the last month increased from -0.9%, to 1.1%, exceeding the economist forecast at 0.8%. The overall data from the U.S. region which published yesterday were almost fared better than market expectation, dialling up the market optimism towards economic progression in the United States, spurring demand for the dollar index. In addition, dollar index received further bullish momentum amid to trade optimism between U.S. and China. According to Reuters, the “phase one” trade deal between Washington and Beijing is still running smooth. However, the renewed escalation of trade tensions remains a significant risk, with the issue of technology posing an obstacle to full resolution. Indeed, investors have to continue to scrutinize the latest updates with regards of trade news between U.S. and China and the economic data from the U.S. region in order to gauge the likelihood movement for the dollar index. On the other hand, the New Zealand Dollar slumped amid to negative current account data from the New Zealand region. According to Statistics New Zealand, New Zealand Current Account for the last quarter came in at -6.35B, missing the economist forecast at -6.34B. As of writing, the dollar index appreciated by 0.09% to 96.82 while the NZD/USD depreciated by 0.27% to 0.6554.
In the commodities market, crude oil price slumped 0.08% to $60.41 per barrel due to surprising build in crude oil inventories. U.S. API Weekly Crude Oil stock notched up to 4.700M from the previous reading at 1.410M. On the other hand, gold price slumped 0.02% to $1476.00 per troy ounces amid to stronger greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16.30 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17.00 | EUR – German Ifo Business Climate Index (Dec) | 95.0 | 95.5 | – |
| 17.30 | GBP – CPI (YoY) | 1.5% | 1.4% | – |
| 18.00 | CPI (YoY) (Nov) | 0.7% | 1.0% | – |
| 21.30 | CAD – Core CPI (MoM)(Nov) | 0.4% | – | – |
| 23.30 | CrudeOIL – Crude Oil Inventories | 0.822M | -1.288M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 96.85. MACD which illustrated diminishing bearish momentum suggest the index to extend its gains after it successfully breakout above the resistance level at 96.85.
Resistance level: 96.85, 97.25
Support level: 96.25, 95.45
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.3170. MACD which illustrated bearish momentum suggest the pair to extend its losses toward the support level at 1.3035.
Resistance level: 1.3170, 1.3315
Support level: 1.3035, 1.2970
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1170. MACD which illustrated bearish momentum suggest the pair to extend its retracement toward the support level at 1.1075.
Resistance level: 1.1170, 1.1240
Support level: 1.1075, 1.1005
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 109.70. MACD which illustrated bearish momentum and the formation of death cross suggest the pair to extend its losses toward support level at 109.25.
Resistance level: 109.70, 110.25
Support level: 109.25, 108.95
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.6850. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the next support level at 0.6815.
Resistance level: 0.6850, 0.6880
Support level: 0.6815, 0.6770
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.6570. MACD which illustrated bearish momentum suggest the pair to extend its losses toward the support level at 0.6535.
Resistance level: 0.6570, 0.6600
Support level: 0.6535, 0.6490
USDCAD, H4: USDCAD was traded higher while currently testing near the 20 moving average line (Red). MACD which illustrated bullish momentum signal suggest the pair to extend its gains after it successfully breakout above the moving average line.
Resistance level: 1.3210, 1.3265
Support level: 1.3145, 1.3085
USDCHF, H4: USDCHF was traded flat below the resistance level at 0.9810. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher toward the resistance level at 0.9810.
Resistance level: 0.9810, 0.9845
Support level: 0.9760, 0.9690
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 60.80. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses toward the support level at 59.70.
Resistance level: 60.80, 61.95
Support level: 59.70, 58.60
GOLD_, H4: Gold price was traded higher following prior rebound from the 20 moving average line (Red). However, MACD which illustrated bearish momentum and the formation of death cross suggest the commodity to be traded lower toward the support level at 1471.65.
Resistance level: 1477.40, 1484.70
Support level: 1471.65, 1464.05