20 August 2019 Morning Session Analysis
Greenback soars over global stimulus.
US dollar extended its gains to a fresh yearly high as US Treasury yields rebounds from recent low with hopes that major economics in the world would take further action in order to prevent possible recession in the near future. Prior, several central banks around the world has initiated extensive rate cuts amid growing uncertainties in the market due to ongoing US-Sino trade war and diminishing growth momentum. In the US, Federal Reserve cut its interest rates by 25 basis points last month as an “insurance” due to recent sluggishness in its economic progression. For the week ahead, investors would scrutinize the speech bound to be delivered by Fed Chair Jerome Powell during Jackson Hole symposium this Friday that may contain further signals with regards to future economic policy guidance. As of writing, the dollar index was quoted up 0.23% to 98.20 during Asian trading session. In the UK, pair of GBP/USD ticked down 0.02% to 1.2129. Sterling retraces from its recent high after EU firmly reassure that Brexit withdrawal agreement will not be open for renegotiation, sparking higher possibility for a hard-Brexit during 31st October deadline.
As for commodities market, crude oil price depreciates by 0.09% to $56.12 per barrel. On yesterday, crude oil received higher demand in the market over reports of a new drone attach on a Saudi oilfield. Otherwise, gold price slumped 0.03% to $1,495.55 a troy ounce due to recent rebound in greenback.
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 |
| 14:00 | EUR – German PPI (MoM) (Jul) | -0.4% | 0.0% | – |
| 04:30
(21st) |
CrudeOIL – API Weekly Crude Oil Stock | -2.190M | – | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower following prior retrace from the top level. MACD which illustrate diminishing upward momentum suggests the index to be traded lower in short-term as technical correction.
Resistance level: 98.30, 98.65
Support level: 97.80, 97.50
GBPUSD, H1: GBPUSD remains traded within a triangle formation. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term.
Resistance level: 1.2140, 1.2170
Support level: 1.2090, 1.2050
EURUSD, H4: EURUSD was traded higher following prior rebound from the support of 1.3070. MACD which has formed a bullish signal suggests the pair to be traded higher in short-term.
Resistance level: 1.1115, 1.1170
Support level: 1.1070, 1.1025
USDJPY, H4: USDJPY was traded lower following prior retrace from the resistance of 106.80. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term.
Resistance level: 106.80, 107.25
Support level: 105.60, 105.05
AUDUSD, H4: AUDUSD remains traded within a descending channel while currently testing at 0.6750. MACD which has formed a bearish signal suggests the pair to extend its losses after closing below 0.6750.
Resistance level: 0.6830, 0.6925
Support level: 0.6750, 0.6675
NZDUSD, H1: NZDUSD was traded lower while currently testing at 0.6400. MACD which has formed a bearish signal suggests the pair to extend its losses after closing below the target of 0.6400.
Resistance level: 0.6420, 0.6440
Support level: 0.6400, 0.6370
USDCAD, H4: USDCAD was traded lower following prior retracement from 1.3335. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3335, 1.3375
Support level: 1.3280, 1.3220
USDCHF, H4: USDCHF was traded lower following prior retrace from 0.9820. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9820, 0.9890
Support level: 0.9790, 0.9745
CrudeOIL, H4: Crude oil price was traded lower following prior retrace from its higher levels. MACD which illustrate diminishing upward momentum suggests its price to be traded lower in short-term, towards the direction of 55.55.
Resistance level: 57.30, 58.70
Support level: 55.55, 54.45
GOLD_, H1: Gold price was traded higher following prior rebound from the support level of 1494.50. MACD which begins to form a bullish signal suggests its price to be traded higher in short-term as technical correction.
Resistance level: 1509.00, 1523.00
Support level: 1494.50, 1483.50