23 January 2019 Morning Session Analysis
Dollar slips following weak housing data.
Dollar index fell against its basket of six major rival pairs after the weak release of U.S Existing Home Sales data yesterday. According to the National Association of Realtors, existing home sales have fell to 4.99M which missed economists’ expectations with the reading of 5.25M. The sluggish housing data which starting to hint a slowdown in U.S economy following rising mortgage rates and also labor shortages that lead to the tightening of home supplies. Besides that, the uncertainty in trade war between China and US remains a concern in the market where the unresolved trade dispute could dragged the sentiment further below. Dollar slips 0.02% to 95.75 as of writing. Meanwhile, NZD/USD skyrocketed 0.19% to 0.6762 at the time of writing following upbeat CPI data. According to Statistics New Zealand, New Zealand CPI for Q4 came in 1.9% by surprise which beat market expectation of 1.8%. The surprising data reflects the economy in New Zealand remains steady and growing, thus, encouraging the bid for the kiwi.
In the commodities market, crude oil price stabilized and edged higher 0.11% to $52.79 per barrel at the time of writing. However, crude oil sentiment remains limited by weak China and global economy slowdown fears. The black commodity remains underpinned by recent China data which reflects on the process of slowdown in its economy. The ongoing trade dispute between US and China also continues to weaken the market as a widespread economy downturn is widely expected to dent the demand of fuel and oil. Market participant will now focus on upcoming inventories data to determine further direction for the commodity. On the other hand, gold price rose 0.05% to 1284.75 following safe-haven choice supported by sluggish dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative JPY BoJ Press Conference
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 19:00 | GBP – CBI Industrial Trends Orders | 8 | 5 | – |
| 21:30 | CAD – Core Retail Sales (MoM) (Nov) | 0.0% | -0.4% | – |
| 21.30 | CAD – Retail Sales (MoM) (Nov) | 0.3% | -0.6% | – |
| 05.30 (24th) | CrudeOIL – API Weekly Crude Oil Stock | -0.560M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level 96.00. MACD which illustrate bearish momentum and the formation of death cross suggest dollar to extend its retracement towards the support level 95.60.
Resistance level: 96.00, 96.30
Support level: 95.60, 95.20
GBPUSD, H4: GBPUSD was traded higher following prior breakout above previous resistance level 1.2930. MACD which illustrate bullish momentum with the formation of golden cross suggest the pair to extend its gains towards the resistance level 1.3015.
Resistance level: 1.3015, 1.3100
Support level: 1.2930, 1.2815
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1350. MACD which illustrate bullish bias signal suggest the pair to extend its rebound towards the resistance level 1.1400.
Resistance level: 1.1400, 1.1440
Support level: 1.1350, 1.1310
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance level of 109.90. MACD which display diminished bearish momentum suggest the pair to extend its gains after a breakout above the resistance level.
Resistance level: 109.90, 110.40
Support level: 109.25, 108.55
AUDUSD, H4: AUDUSD was traded higher following prior rebound near the support level 0.7100. MACD which display diminishing bearish momentum suggest the pair to extend its rebound towards the resistance level 0.7170.
Resistance level: 0.7170, 0.7220
Support level: 0.7100, 0.7030
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance level 0.6780. MACD which display bullish momentum and the formation of golden cross suggest the pair to extend its gains after successfully breaking above the resistance level.
Resistance level: 0.6780, 0.6850
Support level: 0.6715, 0.6625
USDCAD, H4: USDCAD was traded lower while currently testing the support level 1.3325. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses after breaking below the support level.
Resistance level: 1.3420, 1.3500
Support level: 1.3325, 1.3245
USDCHF, H4: USDCHF remained traded in the middle of a sideway channel. However, MACD which display bearish momentum suggest the pair to be traded lower towards the bottom level of the channel and the support level of 0.9950.
Resistance level: 0.9995, 1.0030
Support level: 0.9950, 0.9905
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above previous resistance level 52.70. MACD which display diminishing bearish momentum suggest the commodity to extend its gains towards the resistance level 53.90.
Resistance level: 53.90, 55.00
Support level: 52.70, 51.60
GOLD_, H4: Gold price was traded higher following prior rebound from the support level 1280.00 and the upward trend line. MACD which illustrate bullish momentum and the formation of golden cross suggest gold to extend its rebound towards the resistance level 1288.00.
Resistance level: 1288.00, 1295.00
Support level: 1280.00, 1272.00