23 December 2019 Morning Session Analysis
Greenback in demand ahead of holiday season.
US dollar extended its gains as other major currencies such as pound sterling and euro received selloff since last Friday. Greenback received higher demand in the market while shrugging off the impeachment of US President Donald Trump as market participants pricing in recently released positive data from the region. For the third quarter, US Gross Domestic Product expended within expectation by 2.1%. The data has confounded any speculation upon US economic slowdown despite ongoing trade war for the past few periods. On the other hand, pound sterling and euro depreciates further as both countries gears up for an extensive negotiation with regards to future trade relations after Brexit. Investors were rather pessimistic with regards to UK-EU negotiation after UK Prime Minister Boris Johnson considers to propose a law that will reject any extension towards the Brexit transition period beyond December 2020. This reduces the amount of time for both countries to negotiate in case a common ground has not been reached by then. As such, this may lead to UK losing access into the EU market which could provoke economic crisis ahead. As of writing, dollar index was up 0.34% to 97.22; GBP/USD was down 0.05% to 1.2997; EUR/USD ticked down 0.01% to 1.1077.
As for commodities market, crude oil price depreciates by 0.01% to $60.44 per barrel. Oil futures received some selloff after US Baker Hughes Oil Rig Count increases by 18 to 685, its largest increase since January 2019. On the other hand, gold price ticked up 0.02% to $1,478.21 a troy ounce as market participants liquidate their equity holdings and purchase safe-haven asset before market closes for Christmas and New Year’s.
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, Daily: Dollar index was traded higher while currently testing at the resistance of 97.20. MACD which illustrate diminished downward momentum suggests the index to extend its gains after closing above the resistance level.
Resistance level: 97.20, 97.65
Support level: 96.80, 96.20
GBPUSD, Daily: GBPUSD was traded lower following prior retrace from its higher levels. MACD which has formed bearish signal suggests the pair to be traded lower in short-term.
Resistance level: 1.3160, 1.3325
Support level: 1.2940, 1.2765
EURUSD, H4: EURUSD was traded lower following prior closure below 1.1085. MACD which illustrate bearish signal suggests the pair to extend its losses towards the direction of 1.1050.
Resistance level: 1.1085, 1.1110
Support level: 1.1050, 1.1005
USDJPY, H4: USDJPY was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term.
Resistance level: 109.70, 110.10
Support level: 109.35, 109.00
AUDUSD, H4: AUDUSD was traded lower following prior retracement from its higher level. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6930, 0.6955
Support level: 0.6885, 0.6865
NZDUSD, H4: NZDUSD was traded lower following prior retracement from its higher levels. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6620, 0.6660
Support level: 0.6570, 0.6540
USDCAD, H4: USDCAD was traded lower following prior retrace from upper level of descending channel. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term.
Resistance level: 1.3145, 1.3170
Support level: 1.3085, 1.3025
USDCHF, Daily: USDCHF was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term.
Resistance level: 0.9840, 0.9885
Support level: 0.9800, 0.9780
CrudeOIL, Daily: Crude oil price was traded lower following prior retrace from its higher levels. MACD which illustrate diminishing upward momentum suggests its price to be traded lower as technical correction.
Resistance level: 60.45, 61.65
Support level: 58.55, 56.65
GOLD_, H4: Gold price was traded lower while currently testing at the support level near 1477.00. MACD which illustrate bearish signal suggests its price to be traded lower after closing below the support level.
Resistance level: 1483.60, 1494.00
Support level: 1477.00, 1464.50