22 November 2018 Afternoon Session Analysis
Dollar remains pressured by weak data and rate hike uncertainties.
Dollar index was traded lower compared to a basket of six major currencies prior to European trading session as investors sentiment remained dull amid yesterday’s release of Core Durable Goods Orders which missed economists’ expectation by 30-basis point. Further worsening the sentiment was Fed’s recent rumor to pause the gradual rate hike as early as spring next year. Although December rate hike is still on track, investors now worry that the pause in rate hike might cause a large sell-off for the dollar, limiting the confidence for dollar bulls. Dollar index was fell by 0.07% to 96.45 as of writing. In other news, pair of GBP/USD edged higher by 0.06% to 1.2785 while investors are all keeping their eyes on any possible Brexit breaking news. Recently, UK Prime Minister Theresa May Brexit draft approval by the Cabinet had led to a special summit in Brussels on 25 November. The summit is an official agreement towards the draft which politically declares the future relation between Britain and EU after Brexit.
In the commodities market, crude oil price notched up by 0.05% to $54.53 per barrel. Sentiment towards the oil market remains cloudy as worries of OPEC supply cut in December will not be able to bolster the fall in oil price. Otherwise, gold price increases by 0.16% to $1227.65 a troy ounce amid dollar retracement.
Today’s Holiday Market Close
Time Market Event
All day USD United States – Thanksgiving Day
Today’s Highlight Events
Time Market Event
Tentative CrudeOIL OPEC Meeting
20:30 EUR ECB Publishes Account of Monetary Policy Meeting
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing near the support level 96.40. MACD which illustrate bearish momentum suggest index to extend its losses after a breakout below the support level.
Resistance level: 96.70, 97.00
Support level: 96.40, 96.00
GBPUSD, H4: GBPUSD was traded higher while currently testing near the resistance level at 1.2800. Due to lack of signal from MACD, a breakout above or retracement from the resistance level is required for further confirmation before entering the market.
Resistance level: 1.2800, 1.2855
Support level: 1.2740, 1.2690
EURUSD, H4: EURUSD was traded higher following prior breakout from the previous resistance level 1.1390. MACD which illustrate diminished bearish momentum suggest the pair to extend its gains towards the resistance level 1.1440.
Resistance level: 1.1440, 1.1490
Support level: 1.1390, 1.1335
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance level 113.05. MACD which display diminishing bullish momentum suggest the pair to retrace from the resistance level as a technical correction.
Resistance level: 113.05, 113.50
Support level: 112.75, 112.40
AUDUSD, H1: AUDUSD was traded lower following prior retracement from the resistance level 0.7265. MACD which illustrate bearish momentum and the formation of death cross suggest the pair to extend its retracement towards the support level 0.7230.
Resistance level: 0.7265, 0.7290
Support level: 0.7230, 0.7200
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.6795. MACD which display bearish momentum and the formation of negative divergence suggest the pair to extend its losses after successfully breaking the support level.
Resistance level: 0.6845, 0.6905
Support level: 0.6795, 0.6755
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level 1.3260. MACD which illustrate bearish momentum and the formation of death cross suggest the pair to extend its losses towards the support level 1.3210.
Resistance level: 1.3260, 1.3290
Support level: 1.3210, 1.3180
USDCHF, H1: USDCHF was traded lower following prior retracement from the resistance level 0.9955. MACD which illustrate bearish momentum suggest the pair to extend its retracement towards the support level 0.9920.
Resistance level: 0.9955, 0.9990
Support level: 0.9920, 0.9865
CrudeOIL, H1: Crude oil price was traded lower while currently testing near the support level 54.20. Due to lack of signal from MACD, a rebound from or breakout below the support level is required to attain further confirmation before entering the market.
Resistance level: 55.90, 57.45
Support level: 54.20, 52.45
GOLD_, H4: Gold price was traded higher following prior breakout from previous resistance level at 1225.50. MACD which illustrate bullish momentum and the starting formation of golden cross suggest the commodity to extend its gains towards the resistance level 1231.00.
Resistance level: 1231.00, 1235.90
Support level: 1225.50, 1221.10