20 Jun 2018 Daily Analysis
Greenback rises amid US-China trade chronicle.
US dollar rebounds sharply on yesterday in the middle of US-China trade war saga amid large selloff in Euro and Pound Sterling. The dollar index extended its gains by 0.22% to 94.60 during early Asian trading session. Single common currency Euro remains under pressure since last week after European Central Bank President Mario Draghi calls to maintain monetary policy for the time being, signaling dovish guidance on future interest rate stance. On the other hand, Pound Sterling plunged to 7-months low of $1.3153 against the greenback after Prime Minister Theresa May failed to garner support for the proposal to hand over Brexit decision making to the parliament, stoking greater economic and political uncertainty in case of an impasses as Brexit dead line approaches. However, gains on the greenback were capped below the threshold of 95.00 as fear for full-blown trade war rises after China vowed to retaliate against Trump’s suggestion to impose additional 10% tariff upon $200 billion Chinese goods on yesterday.
In the commodities market, crude oil price pared its losses by 0.34% to $65.23 per barrel industrial data shows large draw in US crude stockpiles by 3.016 million barrels last week, stoking higher optimism towards tonight’s official data from the Energy Information Administration. On the other hand, gold price tacks up 0.04% to $1,275.17 a troy ounce following mild risk aversion in the market due to ongoing political and trade uncertainty.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
21:30 USD Fed Chair Powell Speaks
21:30 EUR ECB President Draghi Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 18:00 | GBP – CBI Industrial Trends Orders (Jun) | -3 | 1 | – |
| 22:00 | USD – Existing Home Sales (May) | 5.46M | 5.55M | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -4.143M | -1.898M | – |
| 22:30 | CrudeOIL – Gasoline Inventories | -2.271M | 0.188M | – |
GBPUSD
GBPUSD, H4: GBPUSD extended its losses following prior breakout from the support level at 1.3235. Both MA lines which continues to expand downward suggests the pair to extend its bearish momentum, towards the direction of 1.3140.
Resistance level: 1.3185, 1.3235
Support level: 1.3140, 1.3050
EURUSD
EURUSD, H1: EURUSD remains traded within a sideways channel while recently retraced from the 60-MA line (green). MACD histogram which illustrate diminishing upward momentum suggests the pair to extend its losses after closing below the 20-MA line (red).
Resistance level: 1.1645, 1.1710
Support level: 1.1550, 1.1445
USDJPY
USDJPY, H1: USDJPY was traded lower following prior retrace from the threshold of 110.10. MACD histogram which illustrate diminishing upward momentum suggests the pair to extend its losses after breaking the support level of 109.80.
Resistance level: 110.10, 110.25
Support level: 109.80, 109.50
CrudeOIL
CrudeOIL, H4: Crude oil price remains traded within a descending wedge following prior rebound from the lower level. Both MA histogram and Stochastic Oscillator which illustrate bullish signal suggest crude oil price to extend its gains after closing above the 20-MA line (red).
Resistance level: 65.75, 67.40
Support level: 64.10, 62.90
GOLD
GOLD_, H1: Gold price extended losses following prior closure below the support level at 1275.80. However, MACD histogram which illustrate diminishing downward momentum may suggest its price to be traded higher in short-term as technical correction before continuing its major bearish bias.
Resistance level: 1275.80, 1285.20
Support level: 1264.00, 1260.00