20 November 2018 Morning Session Analysis
Dollar further losses amid worsening sentiment.
Dollar index was furthering its losses against six major currency pairs while investors are still digesting the dovish report from US Central Bank (Fed). Fed’s report on current economy and inflation outlook reaching a neutral rate will be healthy for the country, but investors worry that Fed’s plan for gradual rate hike in the future might be removed. With the sentiment worsening for dollar, investors now seek for safe-haven asset such as Japanese Yen and gold, decreasing the dollar index by 0.03% to 96.40 as of writing. In other news, pair of AUD/USD was traded flat at 0.7290 after the RBA meeting minutes this morning which bias towards a hawkish tone. The meeting minutes highlighted that RBA’s future plan for rates are more likely to be higher but mentioned nothing regarding the short-term period. Besides that, resuming trade talks between US and China has also supported Australian dollar as Australia is one of China’s major trading partner.
As for commodities market, crude oil price fell 0.44% to $57.10 per barrel after rebounding from lower level amid OPEC decision to cut supply from 1 million bpd to 1.4 million bpd in December to offset the oversupply of crude in the market and the decreasing global demand. On the other hand, gold price fell 0.17% to $1221.20 a troy ounce after hitting a 2-weeks high amid safe-haven demand.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
18:00 GBP BoE Gov Carney Speaks
18:00 GBP Inflation Report Hearings
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 21:30 | USD – Building Permits (Oct) | 1.270M | 1.267M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing near the support level 96.00. MACD which illustrate bearish momentum suggest the dollar to extend its losses after a breakout below the support level.
Resistance level: 96.20, 96.60
Support level: 96.00, 95.70
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level 1.2855. MACD which display bullish signal suggest the pair to extend its gains after a breakout above the resistance level.
Resistance level: 1.2855, 1.2905
Support level: 1.2800, 1.2740
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1440. MACD which illustrate persistent bullish momentum suggest the pair to extend its gains towards the resistance level 1.1490.
Resistance level: 1.1490, 1.1540
Support level: 1.1440, 1.1390
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level 112.40. MACD which display diminishing bearish momentum suggest the pair to extend its rebound towards the resistance level 112.75.
Resistance level: 112.75, 113.05
Support level: 112.40, 111.95
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level 0.7290. MACD which display bearish bias and the formation of death cross suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 0.7315, 0.7340
Support level: 0.7290, 0.7265
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance level 0.6845. MACD which display diminishing bearish momentum suggest the pair to extend its gains after a breakout above the resistance level.
Resistance level: 0.6845, 0.6905
Support level: 0.6795, 0.6755
USDCAD, H4: USDCAD was traded lower following prior breakout below previous support level 1.3180. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses towards the upward trend line.
Resistance level: 1.3180, 1.3210
Support level: 1.3145, 1.3115
USDCHF, H4: USDCHF was traded lower while currently testing near the support level 0.9920. MACD which display persistent bearish momentum suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 0.9945, 0.9990
Support level: 0.9920, 0.9865
CrudeOIL, H4: Crude oil price remained traded in a sideway channel after retracing from the resistance level 57.45. MACD which illustrate starting bearish momentum suggest the commodity to extend its retracement towards the bottom level of the channel.
Resistance level: 57.45, 59.20
Support level: 55.90, 54.20
GOLD_, H4: Gold was traded lower while currently testing near the support level 1221.10. MACD which illustrate bearish momentum suggest the commodity to extend its losses after a breakout below the support level.
Resistance level: 1225.50, 1231.00
Support level: 1211.10, 1216.80