24 December 2018 Morning Session Analysis
Dollar edged lower amid political tensions.
Dollar index was traded lower against a basket of six major pairs during early Asian trading session amid the political tension arising from US. Over the weekend, US President Donald Trump had threatened to fire Federal Reserve (Fed) Chairman Jerome Powell after another rate hike despite Trump’s demand for pause in rate. Later that day, White House budget chief Mick Mulvaney said that Trump is aware that he is unable to fire Powell, and that tension between president and the independent Fed is part of the system. Besides that, an extension of U.S government shutdown which could continue to 3rd January, where Democrats replace republican party from the House of Representatives when the new congress convened has dialed down the market’s positive sentiment toward the Greenback. As of now, Dollar Index plunged 0.12% to 96.30. In other news, pair of USD/CAD fell by 0.21% to 1.3570 after hitting 18 months high due to mixed Canada data last Friday. Canada’s GDP had an actual reading of 0.3%, higher compared to 0.2% while Core Retail Sales was 0.0%, lower compared to forecasted 0.3%. Further boosting the pair’s bullish momentum was the fall in crude oil prices.
In the commodities market, crude oil price surged by 1.55% to $46.05 after falling to lower levels last Friday. During the weekend, US Baker Hughes Oil Rig Count data reported an additional of 10 rigs, which raised investors’ concerns towards oversupply in the market. However, tensions ease as the market moves towards the holiday season. On the other hand, gold price increases by 0.52% to $1262.10 a troy ounce amid dollar’s fall.
Today’s Holiday Market Close
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Today’s Highlight Events
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Today’s Highlight Economic Data
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Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower following prior breakout below previous support level of 96.30. MACD which display bearish momentum and the starting formation of death cross suggest dollar to extend its losses towards the support level 96.00.
Resistance level: 96.30, 96.60
Support level: 96.00, 95.65
GBPUSD, H4: GBPUSD was traded higher inside a sideway channel following prior breakout from previous resistance level of 1.2660. MACD which display starting bullish signal suggest the pair to extend its gains towards the top level of the channel at 1.2700.
Resistance level: 1.2700, 1.2740
Support level: 1.2660, 1.2610
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1365. MACD which illustrate diminishing bearish momentum suggest the pair to extend its rebound towards the resistance level 1.1400.
Resistance level: 1.1400, 1.1435
Support level: 1.1365, 1.1325
USDJPY, H1: USDJPY was traded lower while currently testing near the support level 110.90. MACD which illustrate bearish momentum suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 111.35, 111.65
Support level: 110.90, 110.50
AUDUSD, H4: AUDUSD was traded higher while currently testing near the resistance level 0.7070. MACD which display diminishing bearish momentum suggest the pair to extend its gains after a successful breakout above the resistance level.
Resistance level: 0.7070, 0.7100
Support level: 0.7040, 0.7000
NZDUSD, H1: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6730. MACD which display bullish momentum and the formation of golden cross suggest the pair to extend its gains towards the resistance level 0.6700.
Resistance level: 0.6700, 0.6800
Support level: 0.6730, 0.6700
USDCAD, H1: USDCAD was traded lower following prior breakout below the previous support level 1.3580. MACD which display bearish momentum and the formation of death cross suggest the pair to extend its losses towards the support level 1.3540.
Resistance level: 1.3580, 1.3625
Support level: 1.3540, 1.3500
USDCHF, H4: USDCHF remained traded in a sideway channel while currently testing near the support level at 0.9925. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 0.9965, 1.0000
Support level: 0.9925, 0.9875
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support level 45.50. MACD which illustrate starting bullish momentum suggest the commodity to extend its rebound towards the resistance level 47.00.
Resistance level: 47.00, 48.05
Support level: 45.50, 44.50
GOLD_, H4: Gold price was traded higher while currently testing near the resistance level 1262.90. MACD which display bullish momentum suggest the commodity to extend its gains after successfully closing its candle above the resistance level.
Resistance level: 1262.90, 1267.00
Support level: 1258.00, 1254.30