19 February 2019 Afternoon Session Analysis
Euro dips as reality bites.
Euro failed to extend its gains against the US dollar on Tuesday while market focus drifted back to the economic progression and central bank’s policy in EU zone. Prior, euro received higher demand in the FX market after investors’ sentiment turned positive following easing trade conflict between US and China while US dollar experienced short-term technical correction. Nevertheless, bullish momentum on the euro remains limited as recent economic data from the region portrays possible economic slowdown which may derail European Central Bank’s (ECB) possibility to tighten monetary policy by autumn this year. For the time being, investors will place their attention upon ECB’s monetary policy meeting which is scheduled on 7th March 2019. However, economists are expecting policymakers to slash future growth and inflation projection as EU zone suffers its largest slowdown in half a decade. On the other hand, US dollar remains steady against other major currencies while albeit lacking a strong directional momentum as US market were shut for holiday since yesterday. As of writing, pair of EUR/USD was down 0.08% to 1.1299 while the dollar index ticked up 0.01% to 96.67.
As for commodities market, crude oil price retraced by 0.38% to $55.73 per barrel. Oil prices depreciates slightly during mid-Asian session while financial market await trade talks outcome between US and China. Otherwise, gold price ticked down 0.09% to $1,325.12 a troy ounce following a rebound in US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Average Earnings Index +Bonus (Dec) | 3.4% | 3.5% | – |
| 17:30 | GBP – Claimant Count Change (Jan) | 20.8K | 12.3K | – |
| 18:00 | EUR -German ZEW Economic Sentiment (Feb) | -15.0 | -14.1 | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher while currently testing near the resistance level at 96.75. MACD which illustrate bullish signal suggests the index to extend its gains after closing above 96.75.
Resistance level: 96.75, 97.00
Support level: 96.65, 96.30
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance of 1.2930. MACD which illustrate diminished upward momentum suggests the pair to be traded lower, towards the direction of 1.2855.
Resistance level: 1.2930, 1.2990
Support level: 1.2855, 1.2800
EURUSD, H1: EURUSD was traded lower following prior closure below the support of 1.1300. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 1.1250.
Resistance level: 1.1300, 1.1330
Support level: 1.1250, 1.1220
USDJPY, H4: USDJPY was traded higher following prior rebound from a lower level. MACD which illustrate diminishing downward momentum suggests the pair to advance further up, towards the direction of 111.00.
Resistance level: 111.00, 111.45
Support level: 110.50, 110.00
AUDUSD, H4: AUDUSD was traded lower following prior retrace from the resistance near 0.7170. MACD which has formed a death cross signal suggests the pair to be traded lower, towards the direction of 0.7070.
Resistance level: 0.7170, 0.7275
Support level: 0.7070, 0.7015
NZDUSD, H1: NZDUSD was traded lower while currently testing near the support level at 0.6830. MACD which illustrate bearish signal suggests the pair to extend its losses following successful closure below the support level.
Resistance level: 0.6855, 0.6890
Support level: 0.6830, 0.6800
USDCAD, H4: USDCAD remains traded within a narrowing triangle following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term.
Resistance level: 1.3280, 1.3325
Support level: 1.3220, 1.3175
USDCHF, H4: USDCHF was traded higher following prior rebound from the support at 1.0040. MACD which illustrate bullish signal suggests the pair to extend its gains, towards the direction of 1.0080.
Resistance level: 1.0080, 1.0130
Support level: 1.0040, 1.0000
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance of 56.45. MACD which illustrate the formation of death cross suggests its prices to be traded lower in short-term as technical correction.
Resistance level: 56.45, 57.45
Support level: 55.60, 54.30
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level of 1329.00. MACD which illustrate diminishing upward momentum suggests its price to be traded lower in short-term as technical correction.
Resistance level: 1329.00, 1340.00
Support level: 1315.00, 1303.00