19 August 2019 Morning Session Analysis
US economy loses its steam?
Greenback was traded flat on Monday following growing fears of recession after US Treasury Yield curve inverted while coupled with bearish data from last Friday. As of writing, the dollar index ticks up 0.02% to 98.00. Last Friday, greenback failed to extend its gains further following diminishing momentum with regards to consumer sentiment. According to University of Michigan, its consumer sentiment index fell to 92.1 for the month of August, its lowest level since January 2019. Diminishing consumer sentiment came following yield curve inversion which historically predicted possible recession in the near future. Likewise, overall sentiment in the market remains bleak as ongoing trade war in between US and China sees no end as US President Donald Trump seemingly signaled that he is “not ready to reach a consensus”. For the time being, investors will place their attention upon Federal Reserve’s annual Jackson Hole gathering later this week whereby Fed Chair Jerome Powell will deliver its speech this Friday. On the other hand, pair of GBP/USD rose 0.07% to 1.2157. Pound sterling managed to extend its rebound following bullish employment data that was released during last Thursday.
In the commodities market, crude oil price rose 0.46% to $55.14 per barrel. Oil prices recoup its losses after OPEC reported a sharp fall in crude oil output for the month of July which may help to ease global supply glut. Otherwise, gold price depreciates by 0.23% to $1,510.00 a troy ounce due to increasing demand for risky assets.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:00 | EUR – CPI (YoY) (Jul) | 1.1% | 1.1% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retrace from its higher level. MACD which illustrate diminished upward momentum suggests the index to be traded lower as technical correction.
Resistance level: 98.30, 99.00
Support level: 97.80, 97.10
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level of 1.2140. MACD which illustrate diminished downward momentum suggests the pair to extend its gains, towards the direction of 1.2180.
Resistance level: 1.2180, 1.2220
Support level: 1.2140, 1.2090
EURUSD, H1: EURUSD was traded flat near the 20-MA line (red). MACD which illustrate diminishing upward momentum suggests the pair to extend its losses in mid-term, towards the direction of 1.1070.
Resistance level: 1.1115, 1.1170
Support level: 1.1070, 1.1025
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance of 106.50. MACD which illustrate bullish signal suggests the pair to extend its gains after breaking the target at 106.50.
Resistance level: 106.50, 107.25
Support level: 105.60, 105.10
AUDUSD, H4: AUDUSD remains traded within a downward channel while currently testing at the top level. MACD which illustrate bullish signal suggests the pair to extend its gains after breaking the top level of the channel.
Resistance level: 0.6830, 0.6925
Support level: 0.6750, 0.6675
NZDUSD, H1: NZDUSD was traded lower while currently testing at the support of 0.6420. MACD which illustrate bearish signal suggests the pair to advance further down after closing below the support level.
Resistance level: 0.6440, 0.6465
Support level: 0.6420, 0.6400
USDCAD, H1: USDCAD was traded lower following prior close below 1.3290. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 1.3255.
Resistance level: 1.3290, 1.3305
Support level: 1.3255, 1.3220
USDCHF, H4: USDCHF was traded lower while currently testing at the support of 0.9790. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term after closing below 0.9790.
Resistance level: 0.9820, 0.9890
Support level: 0.9790, 0.9745
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the lower level. MACD which illustrate bullish signal suggests its price to be traded higher, towards the direction of 55.55.
Resistance level: 55.55, 57.30
Support level: 54.45, 53.00
GOLD_, H1: Gold price was traded lower while currently testing at the support of 1509.00. MACD which illustrate bearish signal suggests its price to be traded lower after breaking the target at 1509.00.
Resistance level: 1523.00, 1533.00
Support level: 1509.00, 1495.00