23 December 2019 Afternoon Session Analysis
Dollar remains firm as positive sentiment remain dominant.
Dollar index which measured against a basket of six major currency pairs continue to climbs at the start of holiday week as market are currently optimistic towards the U.S economy. On trade war, U.S President Donald Trump have stated on Friday that he had a “very good talk” with Chinese Premier Xi Jinping about the phase one trade deal. Likewise, China’s Ministry of Finance also stated that the country would lower or remove import tariffs on 850 products starting from Jan 1 which include pork, frozen avocado and certain technology products. On the side note, China have also started to make large purchases of U.S. agricultural products. Thus, the ongoing progress between U.S and China have increase the hopes of the market that the two country may have the potential to resolve its trade conflict, thus continue to fuel the strength for the greenback. At the time of writing, dollar index rose 0.04% to 97.21.
In the commodities market, crude oil price remain steady and rose 0.13% to $60.38 per barrel at the time of writing amid positive progress between U.S and China. Following the latest development where President Donald Trump have provide some positive remarks on China and signaled that an agreement would be signed “very shortly”, market remain optimistic about the demand outlook and continue to hold their ground. On the other hand, gold price also held firm and edge higher 0.11% to $1479.49 a troy ounce as investors remain cautious and enter the safe-haven market following market close for the holiday week.
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 | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Core Durable Goods Orders (MoM) (Nov) | 0.5% | 0.1% | – |
| 21:30 | CAD – GDP (MoM) (Oct) | 0.1% | 0.1% | – |
| 23:00 | USD – New Home Sales (Nov) | 733K | 735K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 96.95. However, MACD which illustrate diminishing bullish momentum suggest the dollar to experience a short-term technical correction towards back the current support level 96.95.
Resistance level: 97.55, 98.20
Support level: 96.95, 96.50
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.2965. However, MACD which illustrate bullish bias signal with the starting formation of golden cross suggest the pair to experience a technical correction towards the resistance level 1.3095.
Resistance level: 1.3095, 1.3225
Support level: 1.2965, 1.2830
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level 1.1105. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a technical correction towards the current resistance level 1.1105.
Resistance level: 1.1105, 1.1175
Support level: 1.1045, 1.0990
USDJPY, H4: USDJPY was traded in a sideway channel while currently testing near the support level 109.25. However, MACD which illustrate bearish momentum signal suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 109.70, 110.20
Support level: 109.25, 108.90
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level 0.6885. MACD which illustrate persistent bullish momentum signal suggest the pair to extend its gains towards the resistance level 0.6925.
Resistance level: 0.6925, 0.6990
Support level: 0.6885, 0.6850
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the MA line 20 (red). However, MACD which illustrate diminishing bullish momentum suggest the pair to be traded lower towards the support level 0.6565.
Resistance level: 0.6630, 0.6710
Support level: 0.6565, 0.6500
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level 1.3185. MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement towards the support level 1.3125.
Resistance level: 1.3185, 1.3260
Support level: 1.3125, 1.3065
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level 0.9780. MACD which illustrate bullish momentum signal suggest the pair to extend its rebound towards the resistance level 0.9845.
Resistance level: 0.9845, 0.9915
Support level: 0.9780, 0.9725
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level 60.85. MACD which illustrate bearish momentum signal suggest the commodity to extend its retracement towards the support level 59.70.
Resistance level: 60.85, 62.05
Support level: 59.70, 58.60
GOLD_, H4: Gold price was traded higher while currently testing the resistance level 1478.50. However, due to lack of momentum and direction from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 1478.50, 1497.00
Support level: 1463.70, 1450.75