25 August 2017 Daily Analysis
Duo bankers eyed, market remained hypnotized.
US dollar ticks higher in a quiet trade on Friday as investors anticipates a pair of speech delivered by Fed Chair and ECB President later today. The dollar index rose 0.05% and last seen around 93.17 against six major currencies. Both speeches by Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi will be highly scrutinized as investors scavenge for hints with regards to future monetary policy stance, albeit neither of them is expected to provide new guidance. However, gains on the greenback was capped after National Association of Realtors reported that existing home sales for July fell short of consensus forecast with only 5.44 million units sold. The data was released after US Labor Department conveyed that the number of individuals who filed for unemployment benefits last week rose less than expected with only 2,000 to a seasonally adjusted total of 234,000. Against other major currencies, EUR/USD was down 0.03% to $1.1797 while USD/JPY stabilizes at 109.55.
Otherwise, crude oil price recovered its overnight losses by 0.61% to $47.72 amid fears of Hurricane Harvey which may force refinery hub in the US to shut down while reducing crude demand for the time being. Subsequently, gold price was held flat at $1,286.66 as investors anticipates further clues from Yellen and Draghi.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative USD Jackson Hole Symposium
22:00 USD Fed Chair Yellen Speaks
03:00 EUR ECB President Draghi Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | EUR – German GDP (QoQ) (Q2) | 0.6% | 0.6% | – |
| 16:00 | EUR – German Ifo Business Climate Index (Aug) | 116.0 | 115.5 | – |
| 20:30 | USD – Core Durable Goods Orders (MoM) (Jul) | 0.1% | 0.4% | – |
| 01:00 | CrudeOIL – US Baker Hughes Oil Rig Count | 763 | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded flat around the strong support of 1.2790 due to lack of bearish momentum. MACD indicator which illustrate diminishing downward momentum suggests GBPUSD to be traded higher in short-term as technical correction. Otherwise, long-term trend direction still suggests ongoing downside bias.
Resistance level: 1.2850, 1.2900
Support level: 1.2790, 1.2720
EURUSD
EURUSD, H1: EURUSD remained under pressure following prior retracement before the strong resistance level of 1.1820. A closure below the 60-MA line (green) would suggest EURUSD to advance further down, and retest near the support level of 1.1780.
Resistance level: 1.1820, 1.1845
Support level: 1.1780, 1.1750
USDJPY
USDJPY, H4: USDJPY was traded higher following prior rebound from the strong support level at 108.90. A closure above the 60-MA line (green) would suggest further upside bias, towards the next target at 110.10.
Resistance level: 110.10, 110.80
Support level: 109.50, 108.90
CrudeOIL
CrudeOIL, H4: Crude oil price was traded within a downward channel following prior rebound from the bottom level. The price action suggests short-term upside bias for its prices to extend its gains towards the target of resistance level at 47.95.
Resistance level: 47.95, 48.40
Support level: 47.40, 47.00
GOLD
GOLD_, H1: Gold price remained traded within a narrowing triangle while currently testing at the bottom level. Both MA line which has formed a death cross signal suggests possibility for a breakout to occur at this level and suggest a change in trend direction to move further downwards thereafter.
Resistance level: 1287.85, 1295.75
Support level: 1283.90, 1279.90