18 March 2019 Afternoon Session Analysis
Dollar tumbled as economy rumbled.
Greenback extended its losses during mid-Asian trading session over the backdrop of soft economic data from the United States. Last Friday, a slew of weaker-than-expected data such as manufacturing output and New York factory activity has further cemented the expectation for Federal Reserve to strike a dovish stance this week. According to reports, US 10-year Treasury yields fell to as low as 2.580%, its lowest threshold since January 4th. Likewise, Federal fund futures are currently pricing in at only 40% chance for a rate hike this year due to diminishing optimism towards US economy progression. Majority of investors expects the Fed to keep their interest rate unchanged while revealing a plan to end its balance sheet tapering during this week’s monetary policy meeting. Overall, market focus will be placed upon how dovish the Fed could get while risks surrounding the US economy such as trade war and global economic recession continues to increase. As of writing, the dollar index fell 0.12% to 95.88. On the other hand, pair of AUD/USD rose 0.36% to 0.7113. Australian dollar received higher demand in the market following weaker greenback while coupled with appreciating iron ore prices – one of Australia’s main exports.
As for commodities market, crude oil price depreciates by 0.10% to $58.60 per barrel. Oil prices slipped on Monday amid market concerns over an economic downturn which may reduce global fuel consumption and its demand. Similarly, gold price fell by 0.25% to $1,299.00 a troy ounce following a shift in market focus towards riskier assets such as Australian dollar and Euro.
Today’s Holiday Market Close
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing near the support level at 95.90. MACD which illustrate bearish signal suggests the index to be traded lower following a successful close below 95.90.
Resistance level: 96.20, 96.55
Support level: 95.90, 95.70
GBPUSD, H1: GBPUSD was traded lower following prior retracement from its higher level. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term, towards the direction of 1.3240.
Resistance level: 1.3350, 1.3400
Support level: 1.3240, 1.3170
EURUSD, H1: EURUSD remains traded within a sideways channel while currently testing near the resistance 1.1340. Stochastic Oscillator which illustrate retracement signal suggests the pair to be traded lower following a retrace from the target 1.1340.
Resistance level: 1.1340, 1.1365
Support level: 1.1300, 1.1260
USDJPY, H4: USDJPY was traded lower following prior retracement from its higher level. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 112.20, 112.80
Support level: 111.45, 111.00
AUDUSD, H4: AUDUSD was traded higher following prior closure above 0.7100. MACD which illustrate bullish signal suggests the pair to extend its gains, towards the direction of 0.7120.
Resistance level: 0.7120, 0.7155
Support level: 0.7100, 0.7075
NZDUSD, Daily: NZDUSD remains traded within a narrowing triangle following prior rebound from the lower level. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6910, 0.7020
Support level: 0.6795, 0.6650
USDCAD, H1: USDCAD was traded lower following prior retracement from the resistance of 1.3345. MACD which illustrate bearish signal suggests the pair to advance further down, towards the direction of 1.3300.
Resistance level: 1.3345, 1.3370
Support level: 1.3300, 1.3270
USDCHF, H4: USDCHF was traded lower following prior closure below 1.0040. However, MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.0040, 1.0070
Support level: 0.9995, 0.9945
CrudeOIL, H1: Crude oil price remains traded within a sideways channel following prior retrace from the top. MACD which illustrate diminishing upward momentum suggests its prices to be traded lower in short-term.
Resistance level: 58.85, 59.65
Support level: 58.00, 57.45
GOLD_, H1: Gold price was traded lower while currently testing near the support level at 1299.00. MACD which illustrate bearish signal suggests its prices to extend its losses after closing below 1299.00.
Resistance level: 1305.60, 1311.00
Support level: 1299.00, 1294.00