25 February 2019 Morning Session Analysis
Greenback topple as doves’ flutters.
US dollar slipped down during late Friday trading session following dovish comments delivered by Federal Reserve policymaker. As of writing, the dollar index was quoted down 0.12% to 96.35. According to Fed vice Chair Randal Quarles, he commented that if their plans for a balance sheet normalization contradicts with their prior objective, they may reassess their approach towards the normalization in the future. Balance sheet normalization was used to combat potential slowdown in the labor market or a slack in inflationary pressure. Such comments indicate that the central bank may prepare to halt their balance sheet unwinding program later this year and yet another gesture for a potential halt in their monetary policy tightening. On the other hand, pound sterling rose 0.05% to 1.3059 against the US dollar during Asian trading session. Currently, PM Theresa May is seeking to make changes upon the Irish backstop, a move which may increase the chances for passing through Brexit deal within the UK Parliament.
As for commodities, crude oil price rose 0.26% to $56.89 per barrel. Oil prices received some support since last Friday after US Baker Hughes reported its first decline in 3 weeks over US oil rigs by 4 to 853. Likewise, further progressiveness on trade talks between the US and China has also increased the optimism in the financial market towards global economic outlook and crude demands. On the other hand, gold price ticks up 0.02% to $1,327.86 a troy ounce following diminishing chances for a rate hike in the US.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
18:00 GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower while currently testing at the support level near 96.25. MACD which illustrate bearish signal suggests the index to extend its losses after successfully closing below this level.
Resistance level: 96.60, 96.80
Support level: 96.25, 96.00
GBPUSD, H1: GBPUSD remains traded within a sideways channel following prior rebound from the bottom level. However, due to the lack of signal from MACD and price action, it is suggested to wait for a breakout before entering the market.
Resistance level: 1.3085, 1.3125
Support level: 1.3025, 1.2990
EURUSD, H1: EURUSD remains traded within a sideways channel following prior rebound from the lower level. Due to the lack of signal from MACD and price action, it is suggested to wait for a breakout before entering the market.
Resistance level: 1.1355, 1.1375
Support level: 1.1330, 1.1300
USDJPY, H4: USDJPY remains traded within a sideways channel following prior rebound from the bottom level. Due to the lack of signal from MACD and price action, it is suggested to wait for a breakout before entering the market.
Resistance level: 111.00, 111.45
Support level: 110.50, 110.00
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support of 0.7070. MACD which has begun to form a golden cross signal suggests the pair to extend its gains, towards the direction of 0.7170.
Resistance level: 0.7170, 0.7225
Support level: 0.7105, 0.7070
NZDUSD, H1: NZDUSD was traded higher following prior breakout from the resistance at 0.6855. MACD which illustrate persistent bullish signal suggests the pair to extend its gains, towards the direction of 0.6890.
Resistance level: 0.6890, 0.6910
Support level: 0.6855, 0.6830
USDCAD, H4: USDCAD was traded lower while currently testing at the bottom level of descending wedge. MACD which illustrate bearish signal suggests the pair to extend its losses after successfully breaking the bottom level.
Resistance level: 1.3175, 1.3220
Support level: 1.3120, 1.3070
USDCHF, H4: USDCHF was traded lower while currently testing at the bottom level of the descending triangle. MACD which illustrate diminished upward momentum suggests the pair to advance further down after closing below 0.9995.
Resistance level: 1.0040, 1.0080
Support level: 0.9995, 0.9970
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the upward trendline. MACD which illustrate diminished downward momentum suggests its prices to extend its gains after closing above 57.45.
Resistance level: 57.45, 58.55
Support level: 56.45, 55.60
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance at 1333.00. MACD which illustrate diminished upward momentum suggests its prices to be traded lower in short-term as technical correction.
Resistance level: 1329.00, 1333.00
Support level: 1323.00, 1315.00