21 August 2019 Afternoon Session Analysis
Slow FX market ahead of central banks meeting.
Dollar index which measures its value against a basket of six major currency pairs rebounds by 0.04% to 98.05 while market awaits further signal during the annual Jackson Hole Symposium this Friday. Prior to the world central banks meeting, market participants will also look at upcoming Federal Reserve (Fed) Meeting Minutes on late Wednesday to obtain insights of Fed’s latest monetary policy stance. Recent rebound seen from US Treasury yield signaled investors that global policymakers are ready to provide further stimulus to support global economic downturn while heightening expectations for further Fed rate cut by the end of this year. However, comments from Fed’s member Rosengren stated that although economies around the world are weakening, US is not obligated to further ease their monetary policy unless US economy itself is pressured by signs of recession. Mixed signals in the market caused investors’ reluctance to enter the market while Fed Chairman Jerome Powell speech on Friday will be the main driver for market’s movement. Elsewhere, pair of EUR/USD was traded lower by 0.05% to 1.1092 as of writing. The single currency was little pressured by the resignation of Italy’s Prime Minister Giuseppe Conte as some argued that the impact will not affect euro’s movement in the long-run.
In the commodities market, crude oil price further its gains by 0.42% to $56.35 per barrel despite a buildup in US crude inventories reported by the American Petroleum Institute (API). As the API data is classified as unofficial for overall US inventory level, investors will wait for tonight’s Crude Oil Inventories data to further gauge oil’s movement. On the other hand, gold price fell by 0.32% to $1,502.35 a troy ounce due to dollar’s rebound.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
02:00 (22nd) USD FOMC Meeting Minutes
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | CAD – Core CPI (MoM) (Jul) | 0.0% | – | – |
| 22:00 | USD – Existing Home Sales (Jul) | 5.27M | 5.39M | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 1.580M | -1.889M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following a rebound from 98.00. MACD which illustrate diminished downward momentum suggests the index to extend its gains toward the resistance level at 98.40.
Resistance level: 98.40, 98.65
Support level: 98.00, 97.50
GBPUSD, H1: GBPUSD was traded lower following prior retracement from 1.2170. MACD which illustrate diminished upward momentum suggests the pair to extend its losses toward the support level at 1.2085.
Resistance level: 1.2170, 1.2220
Support level: 1.2085, 1.2015
EURUSD, H4: EURUSD was traded lower following prior retracement from the 20 moving average lien (Red). MACD which illustrate diminished upward momentum suggests the pair to be traded lower toward the support level at 1.1070.
Resistance level: 1.1115, 1.1155
Support level: 1.1070, 1.1030
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 106.60. MACD which forms bullish signal suggests the pair to extend its gains after successfully breakout above the resistance level at 106.60.
Resistance level: 106.60, 107.25
Support level: 106.00, 105.60
AUDUSD, H4: AUDUSD remains traded within a descending channel while currently testing the top level. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains after successfully breakout above the channel’s top level.
Resistance level: 0.6830, 0.6865
Support level: 0.6750, 0.6695
NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level at 0.6395. MACD which forms diminishing bearish signal suggests the pair to extend its gains towards the direction of 0.6465.
Resistance level: 0.6465, 0.6555
Support level: 0.6395, 0.6330
USDCAD, H4: USDCAD was traded lower while currently testing the 20 moving average line (Red). MACD which illustrate bearish momentum and the formation of death cross suggests the pair to extend its losses after successfully breakout below the 20 moving average line (Red).
Resistance level: 1.3335, 1.3385
Support level: 1.3275, 1.3220
USDCHF, H4: USDCHF was traded higher following a rebound from 50 moving average line (Blue). MACD which illustrate diminished downward momentum suggests the pair to extend its gains toward the resistance level at 0.9840.
Resistance level: 0.9840, 0.9890
Support level: 0.9780, 0.9755
CrudeOIL, H4: Crude oil price was traded higher while currently testing the downward trend line. MACD which illustrate bullish bias momentum suggests the commodity to extend its gains after successfully breakout above the downward trend line.
Resistance level: 56.80, 57.85
Support level: 55.90, 54.65
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level at 1507.10. MACD which illustrate bearish momentum suggests its price to extend its losses toward the support level at 1490.00.
Resistance level: 1507.10, 1526.60
Support level: 1490.00, 1477.20