83% of retail investor accounts lose money when trading CFDs with this provider.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

23 May 2017                       Daily Analysis


Merkel: “Euro is too weak!”

Euro hovered near six-months high against the US counterpart on Tuesday after German Chancellor Angela Merkel said that the currency was “too” weak. Pair of EUR/USD held steady around $1.1241 as of writing. Merkel stated that the common currency is weak due to European Central Bank’s monetary policy, pointing out that it has helped to explain Germany’s relatively high trade surplus. The chancellor’s comment provides fresh momentum to the Euro which has been on a bullish train since French presidential election earlier this month. “While recent diminished French political risk and speculation of ECB policy shift have helped the common currency, the biggest support factor lies on the broader weakness of dollar in wake of Trump-Russia saga,” said Junichi Ishikawa, senior strategist at Tokyo. Likewise, the dollar index eased 0.03% to 96.79, drifting near six-months low of 96.65 against other major peers. The greenback receives broad selling pressure following higher uncertainty in the US political climate which may hinder US Federal Reserve’s ability to raise their interest rates this year.


Glancing through the commodities market, crude oil price held firm at $51.10 per barrel on expectation that an OPEC-led production cut would be extended till next March. However, upward momentum remained subdued as analyst commented that economic slowdown may cloud mid-term outlook for crude market. Otherwise, gold price added up 0.12% to $1,262.01 following broader weakness on the US dollar.


Today’s Holiday Market Close

Time                       Market                  Event



Today’s Highlight Event

Time                       Market                  Event

17:00                      GBP                      Inflation Report Hearings



Today’s Highlight Economy Data

Time Nation & Data Previous Forecast Actual
14:00 EUR – German GDP (QoQ) (Q1) 0.6% 0.6%
15:30 EUR – German Manufacturing PMI (May) 58.2 58.0
16:00 EUR – German Ifo Business Climate Index (May) 112.9 113.1
16:00 EUR – Manufacturing PMI (May) 56.7 56.5
16:00 EUR – Markit Composite PMI (May) 56.8 56.6
16:00 EUR – Services PMI (May) 56.4 56.4
22:00 USD – New Home Sales (Apr) 621K 610K
04:30 Crude Oil – API Weekly Crude Oil Stock 0.882M




GBPUSD, H4: GBPUSD remains traded within a downward channel following prior retracement from the top level of the channel. A closure below the strong support level of 1.2980 would suggest GBPUSD to advance further down, towards the lower level of the channel thereafter.


Resistance level: 1.3050, 1.3100

Support level: 1.2980, 1.2925




EURUSD, H4: EURUSD extended its uptrend following prior expansion of both moving average line while heading upwards. Currently, it is testing near prior peak at 1.1260. A successful breakout from this level would suggest EURUSD to extend its upward momentum towards the next target of resistance level at 1.1345.


Resistance level: 1.1260, 1.1345

Support level: 1.1160, 1.1070




USDJPY, H1: USDJPY remains traded within a small downward channel following prior rebound from the bottom level of the channel. A closure above the 20-moving average line (red) would suggest USDJPY to be traded higher in short-term, towards the upper level of the channel.


Resistance level: 111.55, 112.00

Support level: 111.00, 110.50




CrudeOIL, H1: Crude oil price remains traded within a tight range of 50.70 and 51.30 while currently closed below the 20-moving average line (red). Recent closure suggests crude oil price to be traded lower in short-term, towards the support level of 50.70. Likewise, long-term trend direction could only be determined after a successful breakout from either side of the range.


Resistance level: 51.30, 51.80

Support level: 50.70, 50.10




GOLD_, H4: Gold price regained its upward momentum following prior rebound from the 20-moving average line (red). With regards to the MACD histogram which begins to illustrate upward signal, a closure above the strong resistance level of 1264.15 would suggest an extension of upward momentum for gold price.


Resistance level: 1264.15, 1277.85

Support level: 1254.50, 1244.85