26 December 2018 Morning Session Analysis
Dollar edges lower amid political uncertainties.
Dollar index fell against a basket of six major currencies pairs amid worsening political tensions arising from the US including government shutdown and standoff between US President Donald Trump and Federal Reserve Chairman Jerome Powell. After the Democrats successfully won over the House of Representatives from the Republicans, investors now fear that the change in power will affect US President Donald Trump in introducing new legislation. Besides that, recent tensions between Trump and Federal Reserve (Fed) Chairman Jerome Powell where Trump threatened to fire Powell from his position also worsen the sentiment towards dollar. Trump stated that the only problem with current US economy is Fed’s decision for rate hike, and that they do not understand the current economy outlook. With global economy forecasted to slowdown next year and recent turmoil in the US led investors to shift their investment towards safe-haven assets such as gold and Japanese Yen. The Japanese Yen was largely demanded due to its stability in politics and economy which attracted investors at a time of economy slowdown. Dollar index was down by 0.02% to 96.00 while pair of USD/JPY inched higher by 0.06% to 110.45 at the time of writing.
In the commodities market, crude oil price rallied by 0.80% to $42.75 after hitting 18-months low amid fear of global economy slowdown and also increasing US oil inventories. Although OPEC is expected to cut oil supply by 1.2M bpd, investors now fear that the slowdown in global economy will largely affect oil demand and also its prices. On the other hand, gold price surged by 1.06% to $1272.00 a troy ounce amid global economy uncertainties.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
12:00 JPY BoJ Governor Kuroda Speaks
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level 96.00. MACD which illustrate bearish momentum suggest dollar to extend its losses after a breakout below the support level.
Resistance level: 96.30, 96.55
Support level: 96.00, 95.75
GBPUSD, H1: GBPUSD was traded higher following prior breakout above previous resistance level 1.2700. MACD which display bullish momentum and the formation of golden cross suggest the pair to extend its gains towards the resistance level 1.2740.
Resistance level: 1.2700, 1.2740
Support level: 1.2660, 1.2610
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1400. MACD which illustrate diminished bearish momentum suggest the pair to extend its rebound towards the resistance level 1.1435
Resistance level: 1.1435, 1.1470
Support level: 1.1400, 1.1365
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance level 110.50. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after a successful breakout above the resistance level.
Resistance level: 110.50, 110.90
Support level: 110.00, 109.35
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.7040. MACD which display starting bullish momentum and the formation of golden cross suggest the pair to undergo technical correction and rebound from the support level.
Resistance level: 0.7070, 0.7100
Support level: 0.7040, 0.7000
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance level 0.6730. MACD which illustrate bullish momentum suggest the pair to extend its gains after a breakout above the resistance level.
Resistance level: 0.6760, 0.6800
Support level: 0.6730, 0.6700
USDCAD, H1: USDCAD was traded higher following prior breakout above previous resistance level 1.3580. MACD which illustrate bullish momentum suggest the pair to extend its gains towards the resistance level 1.3625.
Resistance level: 1.3625, 1.3670
Support level: 1.3580, 1.3540
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9860. MACD which display ongoing bearish momentum suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 0.9900, 0.9940
Support level: 0.9860, 0.9830
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below previous support level at 43.55. MACD which illustrate bearish momentum and the formation of death cross suggest the commodity to extend its losses towards the support level 42.00.
Resistance level: 43.55, 45.50
Support level: 42.00, 40.00
GOLD_, H4: Gold price was traded higher while currently testing near the resistance level 1272.60. MACD which display bullish momentum suggest the commodity to extend its gains after a successful breakout above the resistance level.
Resistance level: 1274.00, 1280.00
Support level: 1267.00, 1262.90