19 May 2017 Daily Analysis
Greenback salvaged thanks to upbeat data.
Safe haven Japanese Yen gained during Asian trading hours on Friday as investors race to safe guard their capital following recent political turmoil in Brazil. Pairing of USD/JPY was down 0.26% while exchanging hands at 111.21. Stocks in Brazil slumped 8.8% on yesterday after emerging scandal involving the country’s recently inaugurated President Michel Temer where he was allegedly giving his permission to pay a potential witness to kept silent in the country’s biggest graft probe. In the other region, greenback was offered higher against its major peers following overnight’s better than expected US economic data that has offset recent political turmoil surrounding President Donald Trump. The dollar managed to snap out from its five-days losing streak as Initial Jobless Claims and manufacturing data provides more optimistic outlook. Although the stronger data has shifted investor’s attention away from prior political saga in Washington, market’s expectation for an interest hike in June took a toll, down to 63% as compared to last week with nearly 80% peak. Likewise, the dollar index eased 0.09% to 97.64 as of writing.
In the commodities market, crude oil price rose 15 cents to $49.50 amid growing optimism upon major key producers in extending output cut deal for the second half of the year in order to reduce global supply glut. On the other hand, gold price eased 0.14% to $1,249.89 following dollar’s rebound in tandem with optimistic economic data.
Today’s Holiday Market Close
Time Market Event
Today’s Highlight Event
Time Market Event
Today’s Highlight Economy Data
|Time||Nation & Data||Previous||Forecast||Actual|
|14:00||EUR – German PPI (MoM) (Apr)||0.0%||0.2%||–|
|20:30||CAD – Core CPI (MoM) (Apr)||0.3%||–||–|
|20:30||CAD – Core Retail Sales (MoM) (Apr)||-0.1%||0.2%||–|
|01:00||Crude Oil – US Baker Hughes Oil Rig Count||712||–||–|
GBPUSD, H4: GBPUSD remains traded within an upward channel following prior retracement from the top level of the channel. A closure below the support level of 1.2925 would suggest GBPUSD to move further down and test near the lower level of the channel.
Resistance level: 1.2985, 1.3045
Support level: 1.2925, 1.2865
EURUSD, H4: EURUSD was traded lower following prior retracement from previous high of 1.1170. As the MACD histogram begins to illustrate downward signal and momentum, it is expected to advance further down and retest near the support level of 1.1080.
Resistance level: 1.1170, 1.1250
Support level: 1.1080, 1.1020
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level of 110.50 while currently testing to break the support level of 111.25. A successful breakthrough from the level of 111.25 would suggest USDJPY to move further downwards and retest near the support level of 110.50.
Resistance level: 112.00, 112.90
Support level: 111.25, 110.50
CrudeOIL, H4: Crude oil price remains traded within an upward channel following prior rebound from the bottom level of the channel. It is suggested to move further upwards, towards the top level of the channel after breaking the resistance level of 49.90.
Resistance level: 49.90, 51.60
Support level: 48.75, 47.55
GOLD_, H4: Gold price was traded lower following prior retracement from the 61.8 Fibonacci level of 1264.35. However, as both moving average line continues to expand upward after the formation of golden cross, a rebound from the 20-moving average line (red) would suggest gold price to advance further up, towards the target of resistance level at 1254.75.
Resistance level: 1254.75, 1264.35
Support level: 1245.15, 1233.30