22 January 2019 Morning Session Analysis
Dollar remains steady following M.L.K holiday.
Dollar index gaining some momentum against a basket of six major currencies despite thin market following with Martin Luther King’s Holiday. Although market volatility remains low, dollar continues to be supported by ongoing uncertainty around Brexit negotiations. However, its potential upside remains pressured by global growth slowdown especially from China where its economy grew at is slowest pace since 1990 according to data. Besides that, the International Monetary Fund (IMF) also cuts its 2019 and 2020 global growth forecast which causing further concern for the market. Market participants will now focus on upcoming data and fresh catalyst to determine further direction for the dollar. Dollar index inched higher 0.02% to 95.95 as of writing. Meanwhile, GBPUSD slips 0.03% to 1.2885 at the time of writing as UK Labor Party has proposed plans of second Brexit referendum. According to reports, Labor Party leader Jeremy Corbyn has endorsed a plan to force a second referendum as he is pressured by Labour party members and MPs. The news sparks further uncertainty as a successful vote could lead to Brexit being reversed.
In the commodities market, crude oil price fell 0.95% to $53.66 per barrel at the time of writing following global growth slowdown continues to threaten the market. Oil market remains cloudy and pressured by economy slowdown in China that could decrease the demand for crude oil as China is the second largest consumer on crude oil. Besides that, ongoing trade war also continues to haunt market participant and causing fear in market sentiment. On the other hand, gold price slumped 0.18% to 1277.99 as of writing following a steady dollar.
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 | Market & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Average Earnings +Bonus (Nov) | 3.3% | 3.3% | – |
| 17.30 | GBP – Claimant Count Change (Dec) | 21.9K | 20.0K | – |
| 18.00 | EUR – German ZEW Economic Sentiment (Jan) | -17.5 | -18.4 | – |
| 23.00 | USD – Existing Home Sales (Dec) | 5.32M | 5.25M | – |
| 05.45 (Wed) | NZD – CPI (QoQ) (Q4) | 0.9% | 0.0% |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 95.75. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to undergo a technical correction in short term towards the support level 95.75.
Resistance level: 96.40, 97.15
Support level: 95.75, 95.25
GBPUSD, H4: GBPUSD was traded higher following recent rebound from the MA line 50 (blue). MACD which illustrate diminishing bearish momentum suggest the pair extend rebound towards the resistance level 1.2915.
Resistance level: 1.2915, 1.3000
Support level: 1.2800, 1.2720
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1360. MACD which illustrate bullish bias signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 1.1480.
Resistance level: 1.1480, 1.1565
Support level: 1.1360, 1.1310
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level 110.00. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to extend its retracement towards the support level 109.10
Resistance level: 110.00, 111.40
Support level: 109.10, 107.85
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.7155. MACD which illustrate persistent bearish momentum suggest the pair to extend its losses after it successfully breaks below the support level.
Resistance level: 0.7230, 0.7270
Support level: 0.7155, 0.7115
NZDUSD, H4: NZDUSD was traded higher following recent rebound from the support level 0.6715. MACD which illustrate bullish momentum signal with the starting formation of golden cross suggest the pair to extend its rebound towards the resistance level 0.6800.
Resistance level: 0.6800, 0.6840
Support level: 0.6715, 0.6680
USDCAD, H4: USDCAD was traded higher while currently retest the resistance level 1.3300. MACD which illustrate bullish momentum suggest the pair to extend its gains after it successfully breaks above the resistance level.
Resistance level: 1.3300, 1.3420
Support level: 1.3190, 1.3060
USDCHF, H4: USDCHF was traded higher while currently testing near the resistance level 0.9985. However, MACD which illustrate diminishing bullish momentum with the formation of death cross suggest the pair to undergo a short term technical correction towards the support level 0.9950.
Resistance level: 0.9985, 1.0010
Support level: 0.9950, 0.9910
CrudeOIL, H4: Crude oil price was traded lower following recent retracement from the resistance level 54.55. MACD which illustrate bearish bias signal suggest the pair to extend its retracement towards the support level 52.85.
Resistance level: 54.55, 57.80
Support level: 52.85, 50.30
GOLD_, H4: Gold price was traded lower while currently testing the support level 1278.90. MACD which illustrate persistent bearish momentum suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1287.00, 1296.85
Support level: 1278.90, 1267.25