23 August 2017 Daily Analysis
Investors hop on the dollar-bull train.
Bears continued to steer the Euro on Wednesday following a softer-than-expected economic docket from the eurozone. Overnight, the single common currency sheds its prior gains after German Economic Sentiment published by ZEW plummet to 10.0 in August, missing consensus forecast for a drop to 15.0. The poorer performance reflects high degree of nervousness upon the future path of growth in Germany, albeit overall outlook for the country still remains at relatively stable high levels. Consequently, pair of EUR/USD sheds 0.09% and last quoted around $1.1751. On the other hand, the greenback added up 0.05% to 93.46 as investors shift their focus to speeches by European Central Bank President Mario Draghi and US Federal Reserve Chair Janet Yellen due this Friday at Jackson Hole, Wyoming. However, Draghi is expected to reveal little into the ECB’s policy stance to avert any risk of a surge in the euro following the central bank’s concern over the recent sharp rise of the single common currency. Likewise, Yellen’s remark will be highly scrutinized by investors for further prospect with regards to the timing of next interest rate hike.
As for commodities, crude oil price plunged 0.40% to $47.60 due to ongoing concerns of oversupply and rising output in Libya. Subsequently, gold price sheds 0.03% to $1,284.73 as greenback stages a rebound since yesterday.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
15:00 EUR ECB President Draghi Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:30 | EUR – German Manufacturing PMI (Aug) | 58.1 | 57.7 | – |
| 21:45 | USD – Manufacturing PMI (Aug) | 53.3 | 53.3 | – |
| 21:45 | USD – Services PMI (Aug) | 54.7 | 54.9 | – |
| 22:00 | USD – New Home Sales (Jul) | 610K | 612K | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -8.945M | -3.375M | – |
GBPUSD
GPBUSD, H4: GPBUSD extended its losses following recent breakthrough from the strong support level of 1.2850. Such price action suggests further downside bias for GBPUSD to extend downward momentum towards the next target at 1.2790.
Resistance level: 1.2850, 1.2900
Support level: 1.2790, 1.2720
EURUSD
EURUSD, H4: EURUSD remains traded within a downward channel following prior retracement from the top level. Recent retracement suggests short-term downside bias for EURUSD to extend its losses, towards the next target at the support level of 1.1720.
Resistance level: 1.1780, 1.1840, 1.1890
Support level: 1.1720, 1.1660
USDJPY
USDJPY, H4: USDJPY has extended its gains following recent rebound while closing above both MA lines. MACD histogram which illustrates positive divergence suggests USDJPY to advance further up, towards the next target at resistance level of 110.10.
Resistance level: 110.10, 110.80
Support level: 109.50, 108.90
CrudeOIL
CrudeOIL, H4: Crude oil price remains traded within a narrowing triangle while currently testing at the bottom level. MACD indicator which begins to illustrate increasing downward momentum suggests possibility to occur a breakout at this level and signal a change in trend direction to move further downwards thereafter.
Resistance level: 47.95, 48.40
Support level: 47.40, 47.00
GOLD
GOLD_, H4: Gold price was traded lower following prior retracement from the 20-MA line (red). Referring to the MACD histogram which illustrates negative divergence suggests gold price to extend its losses after successfully closing below the strong support level of 1282.00.
Resistance level: 1292.05, 1300.00
Support level: 1282.00, 1271.90