20 January 2020 Morning Session Analysis
Dollar climbs on positive housing data.
The dollar index which traded against a basket of six major currency pairs continue to advance towards fresh session high during early Asian session as recent house data raising market expectation of expanding U.S economy. According to the Commerce Department, housing starts have rose 16.9% to 1.61 million units in December, higher than market expectation of only 1.38 million. Besides that, the reading was also the biggest gain in 13 years. At the same time, University of Michigan’s preliminary consumer sentiment index for January have edged down to 99.1 from a seven-month high of 99.3 in December. Still, the ongoing signs have displayed that that the consumer remains in good shape. At the time of writing, dollar index have edge higher 0.04% to 97.33. On the other hand, GBP/USD fell 0.05% to 1.2999 as of writing following the recent release of weak Retail Sales. According to National Statistics, the volume of goods sold in stores and online nationwide have fell -0.6%, missing economist forecast with an increase of 0.6%. The data have increased the chances of BoE may reduce its key interest rate this month.
In the commodities market, crude oil price recovers 1.09% to 59.40 at the time of writing following geopolitical crisis in Libya. According to the latest reports, renegade military commander Khalifa Haftar have blocked a key pipeline in western Libya that connects Libya’s largest oilfield to the coast. The movement since removing almost 800,000 barrels per day of exports and boosting the price of crude oil. On the other hand, gold price remain flat and edge higher 0.02% to $1556.86 at the time of writing while market continue to awaits for further catalyst to clearly determine the direction of the safe-haven asset.
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 | Nation & Data | Previous | Forecast | Actual |
| 15.00 | EUR – German PPI (MoM) (Dec) | 0.0% | 0.2% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level 97.35. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the dollar to extend its gains after it breaks above the resistance level 97.35.
Resistance level: 97.35, 97.80
Support level: 96.95, 96.45
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.2965. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.3095, 1.3225
Support level: 1.2965, 1.2830
EURUSD, H4: EURUSD was traded lower while currently testing the support level 1.1085. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.1165, 1.1250
Support level: 1.1085, 1.0990
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level 110.20. However, MACD which illustrate bearish momentum signal suggest the pair to experience a technical correction in short term towards the support level 109.70.
Resistance level: 110.20, 110.65
Support level: 109.70, 109.25
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level 0.6885. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses towards the support level 0.6845.
Resistance level: 0.6885, 0.6930
Support level: 0.6845, 0.6805
NZDUSD, H4: NZDUSD remain traded in a sideway channel while currently near the support level 0.6600. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 0.6650, 0.6740
Support level: 0.6600, 0.6560
USDCAD, H4: USDCAD was traded flat while currently testing near the resistance level 1.3070. However, MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to be traded higher after it breaks above resistance level 1.3070.
Resistance level: 1.3070, 1.3125
Support level: 1.3010, 1.2945
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level 0.9650. MACD which illustrate bullish momentum signal suggest the pair to extend its rebound towards the resistance level 0.9725.
Resistance level: 0.9725, 0.9780
Support level: 0.9650, 0.9590
CrudeOIL, H4: Crude oil was traded higher while currently testing the resistance level at 58.60. MACD which illustrate ongoing bullish signal suggests the commodity to extend its gains after it breaks above the resistance level.
Resistance level: 58.60, 61.05
Support level: 57.75, 56.30
GOLD_, H4: Gold price was remain traded in a sideway channel while currently testing near the resistance level 1561.90. Due to lack of momentum and clear direction from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 1561.90, 1581.90
Support level: 1542.15, 1523.25