26 July 2018 Daily Analysis
Bulls return amid Trump’s turnaround.
Greenback trickles lower during Asian trading hours amid weak regional housing data while market participants mull the outcome of a meeting between US and EU. The dollar index slumped 0.40% to 93.92 as of writing. In a highly anticipated meeting between US President Donald Trump and EU’s chief executive Jean-Claude Juncker, both parties agreed to step back from a trade war while striking a deal to work towards “zero” tariffs, barriers and subsidies. The EU counterpart agreed to purchase billions of dollars’ worth of American exports while Trump agreed to resolve US tariffs which were imposed upon European steel and aluminum imports. Overall optimism which surrounds the meeting conclusion has encouraged market-bulls to boost recent global stocks rally although failed to garner any gains on the dollar after New Home Sales data for last month missed economist expectation. Otherwise, pair of EUR/USD rose 0.03% to $1.1732 over the backdrop of diminished trade-war threat and optimistic German Business Climate Index from yesterday.
As for commodities market, crude oil price tacks up 0.10% to $70.53 per barrel after Energy Information Administration reported a large fall in US crude inventories by 6.147 million barrels last week, confounding expectation for a draw of up to 2.600 million barrels. Otherwise, gold price rose 0.09% to $1,232.84 a troy ounce following weak greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:30 EUR ECB Press Conference
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | EUR – GfK German Consumer Climate (Aug) | 10.7 | 10.7 | – |
| 19:45 | EUR – Deposit Facility Rate | -0.40% | -0.40% | – |
| 19:45 | EUR – ECB Marginal Lending Facility | 0.25% | 0.25% | – |
| 19:45 | EUR – ECB Interest Rate Decision (Jul) | 0.00% | 0.00% | – |
| 20:30 | USD – Core Durable Goods Orders (MoM) (Jun) | 0.0% | 0.5% | – |
| 20:30 | USD – Initial Jobless Claims | 207K | 215K | – |
| 20:30 | USD – Goods Trade Balance | 64.77B | 67.00B | – |
GBPUSD
GBPUSD, H4: GBPUSD extended gains following prior breakout from the downward trendline. Such price action while coupled with bullish signal from the MACD histogram suggests the pair to advance further up, towards the direction of resistance level at 1.3270.
Resistance level: 1.3270, 1.3345
Support level: 1.3180, 1.3130
EURUSD
EURUSD, H1: EURUSD extended gains following prior breakout from the top level of narrowing triangle. Although MACD histogram illustrate bullish signal, a close above the resistance level near 1.1750 is required to attain further confirmation.
Resistance level: 1.1750, 1.1780
Support level: 1.1710, 1.1675
USDJPY
USDJPY, H4: USDJPY resumed its major downtrend following prior retracement from the 20-MA line (red). Both MA line which continues to expand downwards suggests further bearish bias. Thus, a close below the support level of 110.70 will further validate the downside signal.
Resistance level: 111.25, 111.95
Support level: 110.70, 110.15
CrudeOIL
CrudeOIL, H1: Crude oil price remains traded within an ascending channel while recently rebounds from the support level of 69.30. MACD which continues to illustrate bullish signal suggests the commodity price to extend its gains, towards the direction of strong resistance level near 70.00.
Resistance level: 70.00, 70.70
Support level: 69.30, 68.85
GOLD
GOLD_, H1: Gold price was traded higher following prior breakout from the top level of narrowing triangle. Although both MA lines and MACD illustrate bullish bias, a break above 1233.70 is required to attain further confirmation.
Resistance level: 1233.70, 1238.40
Support level: 1226.50, 1222.00