26 November 2018 Morning Session Analysis
Dollar saved by euro’s weakness?
Greenback was opened higher on Monday while investors will be focusing their attention on Friday’s planned meeting between US President Donald Trump and Chinese counterpart Xi Jinping at the upcoming G20 summit. Last week, the dollar pulled back from its 16-months high following soft economic data and dovishness portrayed by some Federal Reserve officials. Some officials postulate to halt any further interest rate hike by Spring next year as neutral rate approaches sooner than later. The call was made following recent softness in inflationary pressure and retail sales whereby some may deem it to be fully capitalized and may reach its maximum potential soon. On the other hand, euro was opened lower this morning due to bearish sentiment within the market towards the single common currency. Last Friday, euro received higher selling pressure after economic data pointed towards further signs of economic slowdown that may change European Central Bank’s plan to taper their QE and tighten monetary policy. As of writing, the dollar index ticked up 0.03% to 96.79 while pair of EUR/USD was down 0.02% to 1.1335.
As for commodities market, crude oil price was down 1.45% to $50.26 per barrel during early Asian trading session. Oil prices collapses following a surge in global oil supply while market participants await OPEC meeting scheduled on 6th December for further market signals. On the other hand, gold price ticks up 0.05% to $1,223.76 a troy ounce due to higher uncertainty within the market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 EUR ECB President Draghi Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 17:00 | EUR – German Ifo Business Climate Index | 102.8 | 102.3 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout from the narrowing triangle. MACD which illustrate bullish signal suggests the index to extend its gains, towards the direction of 97.00.
Resistance level: 97.00, 97.40
Support level: 96.60, 96.20
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the top level of descending channel. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below the support of 1.2805.
Resistance level: 1.2895, 1.2955
Support level: 1.2805, 1.2690
EURUSD, H4: EURUSD was traded lower following prior breakout from 1.1360. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of support level near 1.1310.
Resistance level: 1.1360, 1.1410
Support level: 1.1310, 1.1260
USDJPY, H4: USDJPY was traded higher following prior rebound from the lower level. MACD which illustrate bullish signal suggests the pair to extend its gains after closing above the resistance level at 112.95.
Resistance level: 112.95, 113.30
Support level: 112.60, 112.10
AUDUSD, H4: AUDUSD remains traded within an ascending channel while currently testing at the lower level. MACD which illustrate bearish signal suggests the pair to extend its losses after breaking the lower level of the channel.
Resistance level: 0.7265, 0.7300
Support level: 0.7170, 0.7105
NZDUSD, H1: NZDUSD remains traded within a descending channel while currently testing at the lower level. MACD which begins to form a golden cross signal suggests the pair to extend its gains in short-term after closing above 0.6775.
Resistance level: 0.6775, 0.6795
Support level: 0.6745, 0.6730
USDCAD, H1: USDCAD was traded lower following prior retracement from the resistance level at 1.3255. MACD which illustrate bearish signal suggests the pair to extend its losses in short-term as technical correction.
Resistance level: 1.3255, 1.3320
Support level: 1.3210, 1.3155
USDCHF, H4: USDCHF was traded higher following prior breakout from prior sideways channel. MACD which illustrate bullish signal suggests the pair to extend its gains, towards the direction of resistance level near 1.0000.
Resistance level: 1.0000, 1.0040
Support level: 0.9955, 0.9905
CrudeOIL, H1: Crude oil price was traded lower following prior breakout from the strong support near 53.90. However, MACD which illustrate diminishing downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 53.90, 55.35
Support level: 49.50, 47.50
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1228.00. MACD which illustrate bearish signal suggests the commodity price to extend its losses in short-term, towards the direction of 1215.95.
Resistance level: 1228.00, 1237.25
Support level: 1215.95, 1206.00