20 June 2019 Afternoon Session Analysis
Will Jerome Powell be replaced?
Dollar index which gauge its value against a basket of six major currencies depreciates to two weeks low near 96.35 level following US President Donald Trump mentioned that he has the authority to replace Federal Reserve (Fed) Chairman Jerome Powell and demote him to be a board governor if he wanted to do so. Federal Reserve has been pressured by Donald Trump to reduce its interest rate since last year October after its excessive rate hike decision and commented that the US central bank ‘had gone crazy’. Nonetheless, Jerome Powell has clearly stated in the recent FOMC statement that they will still leave the interest rate unchanged which against the favor of Trump. The uncertainty and slowing down economy outlook in US urged the investors to sell off their Greenback in bulk and shifted toward safe haven asset such as gold and Japanese Yen. During Asian trading session, Dollar index slumped 0.22% to 96.30. On the other hand, the pair of NZD/USD surged 0.55% to 0.6570 amid upbeat GDP data and dovish notes from Fed exerted bullish momentum toward Kiwi. According to Statistics New Zealand, GDP data came in at a rate similar to economist forecast of 0.6% while the goods producing industries has the strongest growth among the components. It indicates that New Zealand economy is still growing at a sustainable level.
As for commodities market, crude oil price inched up 0.54% to $54.45 per barrel amid US stockpile dropped and the optimism news regarding to OPEC has come to a consensus on meeting date lifted up the sentiment of oil market. Lastly, gold price skyrocketed 1.44% to $1379.80 amid appealing of safe haven’t asset.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:00 GBP BoE MPC Meeting Minutes
04:00 (21st) GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Retail Sales (MoM) (May) | 0.0% | -0.5% | – |
| 19:00 | GBP – BoE Interest Rate Decision (Jun) | 0.75% | 0.75% | – |
| 20:30 | USD – Initial Jobless Claims | 222K | 220K | – |
| 20:30 | USD – Philadelphia Fed Manufacturing Index (Jun) | 16.6 | 10.6 | – |
| 20:30 | USD – Philly Fed Employment (Jun) | 18.2 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level 96.30. MACD which illustrate bearish momentum suggest dollar to extend its losses after successfully breaking below the support level.
Resistance level: 97.00, 97.60
Support level: 96.30, 95.60
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level of 1.2690. MACD which illustrate ongoing bullish momentum suggest the pair to extend its gains after successfully breaking above the resistance level.
Resistance level: 1.2690, 1.2765
Support level: 1.2615, 1.2555
EURUSD, H4: EURUSD was traded higher following prior breakout above previous resistance level at 1.1240. MACD which illustrate bullish momentum suggest the pair to extend its gains towards the resistance level 1.1305.
Resistance level: 1.1305, 1.1360
Support level: 1.1240, 1.1180
USDJPY, H4: USDJPY was traded lower following prior breakout below previous support level at 107.40. MACD which display bearish bias momentum suggest the pair to extend its losses towards the support level 107.40.
Resistance level: 107.85, 108.45
Support level: 107.40, 106.65
AUDUSD, H4: AUDUSD was traded higher while currently testing near the resistance level 0.6900. MACD which illustrate bullish momentum suggest the pair to extend its gains after successfully breaking above the resistance level.
Resistance level: 0.6900, 0.6930
Support level: 0.6860, 0.6825
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance level of 0.6580. MACD which display persistent bullish momentum suggest the pair to extend its gains after successfully breaking above the resistance level.
Resistance level: 0.6580, 0.6635
Support level: 0.6540, 0.6500
USDCAD, H4: USDCAD was traded lower while currently testing the support level 1.3240. MACD which display persistent bearish momentum suggest the pair to extend its losses after successfully breaking below the support level.
Resistance level: 1.3305, 1.3370
Support level: 1.3240, 1.3175
USDCHF, H4: USDCHF was traded lower following prior breakout below previous support level of 0.9905. MACD which display ongoing bearish momentum suggest the pair to extend its losses towards the support level 0.9860.
Resistance level: 0.9905, 0.9940
Support level: 0.9860, 0.9805
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level 54.60. However, MACD which illustrate diminishing bullish momentum suggest the commodity to undergo short-term technical correction and retrace back towards the support level 52.65.
Resistance level: 54.60, 55.85
Support level: 52.65, 50.90
GOLD_, H4: Gold was traded higher following prior breakout above previous resistance level at 1370.00. MACD which illustrate bullish bias signal suggest the commodity to extend its gains towards the resistance level 1386.35.
Resistance level: 1386.35, 1400.00
Support level: 1370.00, 1355.00