24 Mei 2017 Daily Analysis
Speculative dollar awaits meeting minutes.
Greenback was offered higher on Wednesday, having rebounded from prior six-months low as US Treasury yield received some support while investors will now place their focus on Federal Reserve’s monetary policy stance. The dollar index was last quoted at 97.19 against six major peers. “The rise in Treasury yields lend some support for the dollar, which appears to be speculative buying as Trump-Russia saga and geopolitical risks are no longer fresh concerns for investors,” said Yukio Ishizuki, senior currency strategist. Immediate market focus lies on the meeting minutes by US Federal Reserve while dollar bulls are expected to welcome any hawkish hints by the central bank. Elsewhere, Great British Pound was traded flat at $1.2967 against the greenback as financial market awaits further developments in Britain’s suspended election campaign following prior suicide bombing in Manchester on Tuesday.
As for commodities, crude oil price seesawed around $51.52 per barrel following the release of industry estimates on US stockpiles. According to American Petroleum Institute, crude inventories fell by 1.5 million barrels albeit less than expected reading of 2.419 million barrels, thus capping any further upward momentum. Otherwise, gold price eases 0.15% to $1,252.86 as greenback regains its footing during Asian trading hours.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Event
Time Market Event
20:45 EUR ECB President Draghi Speaks
02:00 USD FOMC Meeting Minutes
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 22:00 | USD – Existing Home Sales (Apr) | 5.71M | 5.65M | – |
| 22:00 | CAD – BoC Interest Rate Decision | 0.50% | 0.50% | – |
| 22:30 | Crude Oil – Crude Oil Inventories | -1.753M | -2.419M | – |
GBPUSD
GBPUSD, H4: GBPUSD remains traded within an upward channel while recently closing below the support level of 1.2975. Recent closure suggests GBPUSD to advance further down, towards the lower level of the channel after breaking the support level of 1.2935.
Resistance level: 1.2975, 1.3045
Support level: 1.2935, 1.2900
EURUSD
EURUSD, H1: EURUSD remains traded within an upward channel while currently testing at the bottom level of the channel. A successful breakout would signal a change in trend direction for EURUSD to move further downwards thereafter. Otherwise, a rebound would suggest EURUSD to be traded higher in short-term within the upward channel.
Resistance level: 1.1210, 1.1260
Support level: 1.1160, 1.1115
USDJPY
USDJPY, H1: USDJPY has recently broke out from the top level of downward channel, signaling a change in trend direction to move further upwards. As both MA line continues to expand upwards after golden cross formation, a closure above the resistance level of 112.00 would suggest USDJPY to extend its upward momentum.
Resistance level: 112.00, 112.55
Support level: 111.55, 111.00
CrudeOIL
CrudeOIL, H4: Crude oil price extended its uptrend following prior rebound from the 20-moving average line (red). As both moving average line continues to expand upwards, crude oil price is expected to extend its upward momentum after breaking the key Fibonacci level of 78.6 at 51.60.
Resistance level: 51.60, 52.65
Support level: 49.90, 48.75
GOLD
GOLD_, H1: Gold price has recently retraced from the resistance level of 1263.60, completing a double top formation with the neckline at 1245.80. As both moving average line begins to form a death cross, a closure below the support level of 1250.60 would suggest gold price to advance further down towards the neckline thereafter.
Resistance level: 1257.55, 1263.60
Support level: 1250.60, 1245.80