19 May 2021 Morning Session Analysis
Market focus on FOMC Meeting Minutes.
Greenback continues to remain on its backfoot as investors awaits the release of FOMC Meeting Minutes to gauge its near-term trend direction. Previously, Federal Reserve officials reiterated their stance to preserve accommodative monetary policy for longer period of time until all aspects of economy stabilize and achieved its designated target. Likewise, some officials commented that they would require to monitor the current economic recovery momentum in the US to ensure smooth transition and reduces possibility of acting too early. Their comments contradict with market speculation whom are expecting Federal Reserve to tighten their policy earlier than expected due to recent uptick in inflation. However, Fed Chairman Jerome Powell commented that the US economy and its fundamentals are suffice to withstand inflationary pressure past 2% target in order to ensure its stability in the long run. On the other hand, euro extended its gains during Asian trading session after France and Germany announces to loosen restrictive measure over the backdrop of controlled coronavirus transmission. The measure may help to elevate economic recovery momentum in the mid-term and reduces the risk of recession. As of writing, dollar index was down 0.01% to 89.72 while EUR/USD was up 0.02% to 1.2223.
As for commodities, crude oil price ticked down 0.05% to $65.27 per barrel. Oil price was overtaken by bearish market following Russian diplomat Mikhail Ulyanov’s suggestion towards Iran to rejoin the global denuclearization treaty in order to preserve peace. Such action may cancel US’s sanction upon Iran which may allow the country to export its oil to other regions. On the other hand, gold price rose 0.02% to $1,868.94 a troy ounce due to weaker US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
02:00 (20th) USD FOMC Meeting Minutes
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – CPI (YoY) (Apr) | 0.7% | 1.4% | – |
| 17:00 | EUR – CPI (YoY) (Apr) | 1.6% | 1.6% | – |
| 20:30 | CAD – Core CPI (MoM) (Apr) | 0.3% | – | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -0.427M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was higher following a rebound near 89.70. MACD which illustrate diminished downward momentum suggests the index to be traded higher in short-term as technical correction.
Resistance level: 90.00, 90.25
Support level: 89.70, 89.45
GBPUSD, H4: GBPUSD was traded higher following prior breakout at 1.4180. However, MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.4255, 1.4345
Support level: 1.4180, 1.4105
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.2125. However, MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2230, 1.2270
Support level: 1.2170, 1.2125
USDJPY, H1: USDJPY was traded higher following prior rebound from the lower level. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term.
Resistance level: 109.00, 109.25
Support level: 108.85, 108.65
AUDUSD, H4: AUDUSD was traded lower following prior retracement from 0.7805. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7805, 0.7850
Support level: 0.7755, 0.7700
NZDUSD, H4: NZDUSD was traded lower following prior retrace from 0.7270. MACD which illustrate diminished upward momentum suggests the pair to be traded lower as technical correction.
Resistance level: 0.7240, 0.7270
Support level: 0.7190, 0.7145
USDCAD, H4: USDCAD was higher following prior rebound from lower level. MACD which illustrate bullish divergence signal suggests the pair to be traded higher in short-term.
Resistance level: 1.2080, 1.2180
Support level: 1.2010, 1.1900
USDCHF, H1: USDCHF was traded higher following a rebound from the lower level. MACD which shows the formation of bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.8985, 0.9000
Support level: 0.8960, 0.8940
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the higher level. MACD which forms bearish signal suggests its price to be traded lower in short-term as technical correction.
Resistance level: 65.50, 66.50
Support level: 64.40, 63.25
GOLD_, H4: Gold price was traded higher following prior breakout at the resistance level of 1863.25. However, MACD which illustrate bearish divergence signal suggests its price to be traded lower in short-term.
Resistance level: 1880.00, 1895.00
Support level: 1863.25, 1845.00