26 September 2017 Daily Analysis
Greenback and Pound Sterling on strong bullish support.
Dollar index was last traded at 92.44 with an increase of 0.53%. The spike increase of Greenback was due to Dudley’s speech by mentioning that the Fed is on track to increasing interest rates gradually following factors suppressing inflation are fading and the fundamentals of U.S. economy are overall positive. In consequence, his speech has sparked fresh hopes within investors to expect a rate hike by the Fed before the end of the year. On the other hand, GBP/USD held steady around 1.3479 with a slight gains of 0.10%. Pound Sterling has recovered from its moderate losses after UK Prime Minister Theresa May’s proposed a transition period of around two years after Brexit, in which access to the single market will continue on current terms. However, rating agency Moody’s downgraded Britain’s credit rating to Aa2 after May made her speech, emphasizing that the government’s debt-reducing plan had been knocked off course and that Brexit would continue to pressure on the economy.
In the commodity market, crude oil price soared to its highest level in 5-months with an increase of 2.95%, traded at $52.12 per barrel. The boost in the crude oil price was due to positive results from the OPEC and Russia’s intentions to decrease the global supply, as well as a warning from Turkish President Tayyip Erdogan that Turkey could cut off the pipeline that carries oil from northern Iraq to the outside world. Likewise, gold prices increased sharply by 1.08% to $1310.98 a troy ounce, following warning by the North Korean Foreign Minister Ri Yong Ho that Pyongyang has the privilege to “shoot down U.S. bombers”, further escalating geopolitical tensions.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
06:30 USD FOMC Member Kashkari Speaks
21:30 USD FOMC Member Mester Speaks
22:30 USD FOMC Member Brainard Speaks
00:45 USD Fed Chair Yellen Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 09:00 | NZD – ANZ Business Confidence (Sep) | 18.3 | – | 0 |
| 22:00 | USD – CB Consumer Confidence (Sep) | 122.9 | 120.0 | – |
| 22:00 | USD – New Home Sales (Aug) | 571K | 585K | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | 1.443M | – | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded higher prior its rebound from support level at 1.3440. Formation of positive divergence as shown by MACD histogram suggests the pair to trade higher, testing resistance by 200-MA line around 1.3485.
Resistance level: 1.3485, 1.3585
Support level: 1.3440, 1.3315
EURUSD
EURUSD, H1: EURUSD was traded lower after breaking below support level at 1.1865. Golden-cross as formed by MACD signal line suggests the pair to undergo short-term technical correction, trading higher toward current resistance level at 1.1865.
Resistance level: 1.1865, 1.1985
Support level: 1.1820, 1.1715
USDJPY
USDJPY, H4: USDJPY was traded higher after recent rebound from support level at 111.45. A long bearish engulfing candlestick coupled with downward slope of MACD histogram suggests the pair on bias to further its losses, testing back the said support level.
Resistance level: 112.70, 114.00
Support level: 111.45, 110.70
CrudeOIL
Crude OIL, Daily: Crude oil price was traded higher after breaking resistance level at 51.25. Formation of long bullish candlestick and upward slope of MACD signal line suggests crude oil price to extend its gains toward the next resistance level at 53.75.
Resistance level: 53.75, 54.35
Support level: 50.00, 49.30
GOLD
GOLD_, H4: Gold price was traded higher prior breaking above resistance level at 1299.05 and 200-MA line. Upward slope of MACD histogram suggests gold price to continue its momentum to trade higher toward the next resistance level at 1321.35.
Resistance level: 1321.35, 1334.85
Support level: 1299.05, 1289.80