26 July 2017 Daily Analysis
Sentiment on the verge, all eyes on FOMC.
Greenback held overnight gains during early Asian trading hours on Wednesday while market participants awaits Federal Reserve’s monetary policy views. The dollar index ticked up 0.08% while hovering near 93.90. Overnight, the dollar was traded flat against other major currencies while the Fed’s two-day policy meeting overshadowed the better-than-expected consumer confidence towards the strength of US economy. The Consumer Confidence Index rose to 121.1 in July, its highest level in 16 years whereas economist expected for a decline to 116.5. While the Feds are widely expected to keep their interest rate unchanged, investors will be peering into their latest monetary policy statement to garner fresh insights with regards to the timing of next rate hike and balance sheet normalization. Against other major currencies, euro eased 0.06% to $1.1639 while pairing of USD/JPY rose 0.12% to 112.02.
Otherwise, crude oil price extended gains by 1% to $48.37 a barrel following a larger-than-expected draw in crude inventories. American Petroleum Institute reported that US crude stockpiles dropped sharply by 10.23 million barrels last week, far exceeding an expected draw of only 3 million. On the other hand, gold price losses its ground after shedding 0.36% to $1,247.24 following greenback’s appreciation.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
02:00 USD FOMC Statement
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 09:30 | AUD – CPI (QoQ) (Q2) | 0.5% | 0.4% | 0.2% |
| 16:30 | GBP – GDP (YoY) (Q2) | 2.0% | 1.7% | – |
| 22:00 | USD – New Home Sales (Jun) | 610K | 615K | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -4.727M | -2.629M | – |
| 02:00 | USD – Fed Interest Rate Decision | 1.25% | 1.25% | – |
GBPUSD
GBPUSD, H1: GBPUSD remains traded within an upward channel while currently testing at the bottom level. A breakout from this level would signal an extension of downtrend, towards the next target at 1.3000. Otherwise, a rebound would suggest GBPUSD to be traded higher in short-term within the upward channel.
Resistance level: 1.3045, 1.3080
Support level: 1.3025, 1.3000
EURUSD
EURUSD, H1: EURUSD remains traded within an upward channel following a rebound from the bottom level. A closure above the resistance level of 1.1655 would suggest EURUSD to extend its gains towards the next target at 1.1680.
Resistance level: 1.1680, 1.1710
Support level: 1.1655, 1.1620
USDJPY
USDJPY, H4: USDJPY extended gains following prior rebound and closure above the 20-MA line (red). MACD histogram illustrate substantial upward signal suggests USDJPY to extend its upward momentum after successfully closing above the resistance level of 112.10.
Resistance level: 112.10, 112.55
Support level: 111.50, 110.60
CrudeOIL
CrudeOIL, Daily: Crude oil price remains traded within a downward channel while currently testing near the top level near the resistance level of 48.50. Both MA lines which continues to narrow upwards suggests a chance to occur breakout from the top level and signal an extension of uptrend thereafter.
Resistance level: 48.50, 50.00
Support level: 47.00, 45.25
GOLD
GOLD_, H4: Gold price pared its prior gains following a retracement from the previous high at 1258.65. MACD histogram which illustrates downward signal suggests gold price to extend its losses after breaking the 23.6 Fibonacci level at 1245.90.
Resistance level: 1253.00, 1258.65
Support level: 1245.90, 1238.00