21 January 2020 Morning Session Analysis
Dollar remains calm amid recent holiday in U.S.
The dollar index which traded against a basket of six major currency pairs was largely flat during early Asian session following recent U.S holiday. Due to U.S celebrate Martin Luther King, Jr. Day on Monday, market offers little incentive for traders to take risk. However, the greenback remains strong against its peers as investors continue to gauge its sentiment with recent data. U.S. housing starts in December were well above economists’ estimates for 1.38 million and were the biggest gain in 13 years. Retail sales were also on the rise and a gauge of manufacturing activity rebounded to its highest in eight months. These positive data have reduced the chances of Federal Reserve to slash rates when it meets later this month. Still, market continues to await for further catalyst that may determine the direction for the greenback. As of writing, dollar index edged higher 0.01% to 97.35.
In the commodities market, crude oil price slips 0.24% to $58.70 at the time of writing following market cashing out from Libya opening spike. As weekend reports surrounding the unrest in Libya and Iraq caused an opening gap on Monday, markets were quick to cash in on the concerns regarding on production of 1.2 million bpd (barrels a day) are expected to be disrupted due to the pipeline closures in Libya. In the other hand, gold price remains flat and fell 0.03% to $1560.56 a troy ounce as of writing while investors waiting for further signal to determine the sentiment for the market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
11.00 JPY BoJ Outlook Report (YoY)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 11.00 | JPY – BoJ Interest Rate Decision | -0.10% | -0.10% | – |
| 17.30 | GBP – Average Earnings Index +Bonus (Nov) | 3.2% | 3.1% | – |
| 17.30 | GBP – Claimant Count Change (Dec) | 28.8K | 22.6K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level 97.35. However, MACD which illustrate diminishing bullish momentum suggest the dollar to experience a technical correction towards the support level 96.95.
Resistance level: 97.35, 97.80
Support level: 96.95, 96.45
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level 1.2965. MACD which illustrate bullish bias signal with the starting formation of golden cross suggest the pair to extend its rebound towards the resistance level 1.3095.
Resistance level: 1.3095, 1.3225
Support level: 1.2965, 1.2830
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1085. MACD which illustrate diminishing bearish momentum suggest the pair to extend its rebound towards the resistance level 1.1165.
Resistance level: 1.1165, 1.1250
Support level: 1.1085, 1.0990
USDJPY, H4: USDJPY was traded flat while currently testing the resistance level 110.20. However, MACD which illustrate bearish momentum signal suggest the pair to be traded lower in short term towards the support level 109.70.
Resistance level: 110.20, 110.65
Support level: 109.70, 109.25
AUDUSD, H4: AUDUSD was traded higher following prior rebound from its low level. MACD which illustrate bullish bias signal suggest the pair to extend its rebound towards the resistance level 0.6885.
Resistance level: 0.6885, 0.6930
Support level: 0.6845, 0.6805
NZDUSD, H4: NZDUSD remain traded in a sideway channel while currently near the support level 0.6600. MACD which illustrate bearish momentum signal suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 0.6650, 0.6740
Support level: 0.6600, 0.6560
USDCAD, H4: USDCAD remain traded in a sideway channel following prior retracement from the resistance level 1.3070. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its retracement in short term towards the support level 1.3010.
Resistance level: 1.3070, 1.3125
Support level: 1.3010, 1.2945
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level 0.9650. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower in short term towards the support level 0.9650.
Resistance level: 0.9725, 0.9780
Support level: 0.9650, 0.9590
CrudeOIL, H4: Crude oil was traded lower following prior retracement from the resistance level 59.55. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its retracement towards the support level 57.75.
Resistance level: 58.60, 61.05
Support level: 57.75, 56.30
GOLD_, H4: Gold price was remain traded in a sideway channel while currently testing near the resistance level 1561.90. Due to lack of momentum and clear direction from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 1561.90, 1581.90
Support level: 1542.15, 1523.25