18 December 2020 Afternoon Session Analysis
Dollar slumped amid bearish economic data.
The Dollar Index which traded against a basket of six major currency pairs slumped over the backdrop of the string of downbeat economic data on yesterday. According to Department of Labor, the U.S Initial Jobless Claims had notched up form the preliminary reading of 862K to 885K, exceeding the market forecast at 800K. Meanwhile, U.S. Philadelphia Fed Manufacturing index declined significantly from the previous reading of 26.3 to 11.1, which also worse than the economist expectation at 20.0. As both data fared worse than expectation, which dialled down the market optimism toward the economic progression in the United States while diminishing market demand on the US Dollar. Besides, the positive development with regards of the Covid-19 vaccine had also spurred risk-on sentiment, which prompting investors to shift their portfolio from the safe-haven US Dollar into other riskier currencies. According to BBC news, the Food and Drug Administration (FDA) had voted 20-0 with one abstention that the benefits of the Moderna vaccine outweigh the risks for those aged 18 and over. As of writing, the Dollar Index depreciated by 0.05% to 89.80.
In the commodities market, the crude oil price slumped 0.25% to $48.85 per barrel as of writing amid technical correction. Nonetheless, the overall trend for the crude oil commodity remained bullish amid Covid-19 vaccine development had spurred positive prospect for the crude oil demand in future. On the other hand, the gold price surged 0.10% to $1880.05 per troy ounces amid weakening US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative JPY BoJ Monetary Policy Statement
Tentative JPY BoJ Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15.00 | GBP – Retail Sales (MoM) (Nov) | 1.2% | -4.2% | – |
| 17.00 | EUR – German Ifo Business Climate Index (Dec) | 90.7 | 90.0 | – |
| 21.30 | CAD – Core Retail Sales (MoM) (Oct) | 1.0% | 0.2% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 90.00. However, MACD Which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 90.00, 90.95
Support level: 89.05, 88.15
GBPUSD, H1: GBPUSD was traded lower while currently testing the support level at 1.3530. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3620, 1.3750
Support level: 1.3530, 1.3465
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.2260. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2260, 1.2330
Support level: 1.2165, 1.2075
USDJPY, H1: USDJPY was traded higher following prior breakout above the previous resistance level at 103.30. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 103.70.
Resistance level: 103.70, 104.05
Support level: 103.30, 102.85
AUDUSD, H4: AUDUSD was traded lower while currently near the support level at 0.7575. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7690, 0.7765
Support level: 0.7575, 0.7480
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level 0.7165. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement towards the support level 0.7095.
Resistance level: 0.7165, 0.7235
Support level: 0.7105, 0.7015
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.2720. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3025, 1.3370
Support level: 1.2720, 1.2520
USDCHF, H4: USDCHF remain traded in a sideway channel while currently testing the support level 0.8835. However, MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to be traded higher in short term towards the resistance level 0.8915.
Resistance level: 0.8915, 0.8980
Support level: 0.8835, 0.8755
CrudeOIL, Weekly: Crude oil price was traded higher while currently testing near the resistance level 50.00. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 50.00, 60.20
Support level: 41.65, 33.30
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1895.90. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 1868.15.
Resistance level: 1895.90, 1931.30
Support level: 1868.15, 1832.60