20 February 2019 Afternoon Session Analysis
Greenback slacks ahead of Fed minutes.
Greenback droops against others major peers on Wednesday following diminishing US treasury yields prior to the release of Federal Reserve’s meeting minutes. As of writing, the dollar index was quoted down 0.04% to 96.29. Treasury yields was being weighed down by pessimistic sentiment in the financial market as traders are currently pricing in a potential dovishness from the Federal Reserve. However, losses on the greenback were limited as investors ebb on optimism that a fresh round of trade talks between US and China may yield to a resolution in their trade conflict. On the other hand, pair of USD/JPY extended gains by 0.20% to 110.83 during mid-Asian trading session. Japanese yen received fresh rounds of selloff after Bank of Japan Governor Haruhiko Kuroda said that the central bank is ready to ramp up stimulus if sharp yen appreciation hurts the economy. Further loosening of monetary policy in the region may shore up higher supply of Japanese yen and thus artificially suppressing its value in return.
In terms of commodities, crude oil price skyrocketed by 1.29% to $56.75 per barrel. Oil price remains in a bullish traction following higher optimism which surrounds US-China trade talks and sanction against oil producing nation – Venezuela. Likewise, gold price appreciates by 0.17% to 10-months high of $1,343.88 a troy ounce following weaker greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
03:00 (21st) USD FOMC Meeting Minutes
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 15:00 | EUR – German PPI (MoM) (Jan) | -0.4% | -0.2% | – |
| 05:30 (21st) | CrudeOIL – API Weekly Crude Oil Stock | -0.998M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the sideway bottom level at 96.45. MACD which illustrate bearish bias momentum suggests the index to extend its losses toward the support level at 96.00.
Resistance level: 96.45, 97.00
Support level: 96.00, 95.65
GBPUSD, H4: GBPUSD was traded higher while currently testing near the resistance level at 1.3085. MACD which illustrate diminishing bullish momentum suggest the pair to undergo technical correction in short term, toward the support level at 1.2975.
Resistance level: 1.3085, 1.3155
Support level: 1.2975, 1.2895
EURUSD, H4: EURUSD was traded higher following prior breakout above the resistance level at 1.1340. MACD which illustrate bullish signal suggest the pair to extend its gains toward the resistance level at 1.1390.
Resistance level: 1.1390, 1.1435
Support level: 1.1340, 1.1300
USDJPY, H4: USDJPY was traded higher following prior breakout above the resistance level at 110.60. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 111.05.
Resistance level: 111.05, 111.35
Support level: 110.60, 110.30
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7155. MACD which illustrate diminishing bullish momentum suggest the pair to extend its gains after successfully breakout below the support level at 0.7155.
Resistance level: 0.7200, 0.7290
Support level: 0.7155, 0.7060
NZDUSD, H1: NZDUSD was traded lower following prior retracement from the resistance level at 0.6885. MACD which illustrate diminishing bullish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 0.6850.
Resistance level: 0.6885, 0.6905
Support level: 0.6850, 0.6820
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.3195. MACD which illustrate bearish bias suggest the pair to extend its losses toward the support level to 1.3145.
Resistance level: 1.3195, 1.3225
Support level: 1.3145, 1.3090
USDCHF, H4: USDCHF was traded lower following prior breakout below the sideway channel bottom level at 1.0025. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 0.9990.
Resistance level: 1.0025, 1.0090
Support level: 0.9990, 0.9945
CrudeOIL, H4: Crude oil was traded higher while currently testing the resistance level at 56.55. However, MACD which illustrate bearish bias momentum suggest the commodity to undergo technical correction in short term toward a lower level.
Resistance level: 56.55, 57.75
Support level: 55.50, 54.30
GOLD, H1: Gold was traded lower while currently testing near the support level at 1341.80. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its losses after successfully break out the support level at 1341.80.
Resistance level: 1347.50, 1355.40
Support level: 1341.80, 1334.85