21 July 2017 Daily Analysis
Draghi came to justify, Euro creeps to two-years high.
Euro stood tall at 22-months high against the greenback on Friday after European Central Bank (ECB) President Mario Draghi commented that the bank would discuss the next step for its monetary stimulus program in fall. Pair of EUR/USD eased 0.09% to $1.1622 as of writing. Speaking at the ECB post meeting press conference, Draghi stated that the governing council was “unanimous in setting no precise date on when to discuss changes in the future” while adding that the discussion may start during autumn. The shared currency reacted positively as investors deemed the remark as a sign that ECB might not extend its quantitative easing program beyond December. On the other hand, US dollar took another hit on yesterday following the news of Special Counsel Robert Mueller’s intention to expand his investigation to look at US President Donald Trump’s business dealing with Russia. Such move may slowdown the introduction of Trump’s pro-growth policies which are deemed to boost the economy. Consequently, the dollar index ticked up 0.02% to 94.10.
Otherwise, crude oil price settled higher at $46.97 while investors await OPEC’s meeting which is scheduled next Monday for further signal regarding their production cut deal. Concurrently, gold price sheds $0.83 to $1,243.97 while on track for a second consecutive weekly gains after easing from a three-weeks high on previous session.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Public Sector Net Borrowing (Jun) | 5.99B | 4.30B | – |
| 20:30 | CAD – Core CPI (MoM) (Jun) | 0.1% | – | – |
| 20:30 | CAD – Core Retail Sales (MoM) (May) | 1.5% | 0.3% | – |
| 01:00 | CrudeOIL – US Baker Hughes Oil Rig Count | 765 | – | – |
GBPUSD
GBPUSD, H4: GBPUSD remains traded within an upward channel following prior retracement from the top level. Both MA line which continues to narrow downward suggests GBPUSD to extend its losses towards the bottom level of the channel after a successful closure below the 60-MA line (green).
Resistance level: 1.3000, 1.3050
Support level: 1.2920, 1.2855
EURUSD
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level of 1.1480. Both MA lines which continues to expand upwards suggests EURUSD to extend its uptrend after breaking the resistance level of 1.1650.
Resistance level: 1.1650, 1.1735
Support level: 1.1570, 1.1480
USDJPY
USDJPY, H4: USDJPY was traded higher following prior rebound from the strong support level of 111.65. Such price movement suggests USDJPY to be traded higher in short-term as technical correction, towards the target of resistance level at 112.30.
Resistance level: 112.30, 113.15
Support level: 111.65, 111.00
CrudeOIL
CrudeOIL, H1: Crude oil price remains traded within an upward channel while recently closed below the 60-MA line (green). Stochastic Oscillator which begin to show retracement signal suggests crude oil price to be traded lower towards the support level of 46.80. A breakout from the bottom level of the channel will signal a change in trend direction to move further downwards.
Resistance level: 47.15, 47.65
Support level: 46.80, 46.35
GOLD
GOLD_, H4: Gold price has extended its gains following prior rebound near the support level of 1238.05. Both MA lines which continues to expand upwards after the formation of golden cross suggests gold price to extend its uptrend after closing above the strong resistance level of 1247.15.
Resistance level: 1247.15, 1253.00
Support level: 1238.05, 1231.70