27 February 2018 Daily Analysis
Powell’s testimony in focus today.
Dollar index was consolidating the 90.0 handle with less volume while market participants are looking ahead to Fed Chairman Powell’s testimony before the House Financial Services Committee at 23:00 (GMT +8). On his first ever testimony, Powell is expected to provide his views on a wide range of topics which could serve as a catalyst to a more aggressive market movement later on. Market participants will be on-eyed towards the Fed’s future plan on monetary tightening following U.S. 10-year bond yields which have approached the 3.00% psychological level. Meanwhile, some analysts predicted that the tightening path could be remained gradual following concerns over inflationary pressure in the region. On the contrary, GBP/USD was down 0.08% to $1.3970 as of writing after Labor party took a different stance instead of a softer approach towards Brexit. According to Labor party leader Corbyn, they are considering a different Brexit deal regarding a new customs union with the EU which enables UK to trade seamlessly with the EZ without paying any duties. The Brexit saga was deemed to never ending which has negatively impacted on the Pound Sterling.
In the commodities market, crude oil price rose 0.23% to its three-weeks high, currently standing at $64.03 per barrel following ongoing positive signs from OPEC and non –OPEC countries to continue their production curbs and a fall in U.S. production that dipped from 10.271 million bpd to 10.270 million bpd. Likewise, gold price rose 0.38% to $1335.77 a troy ounce while market participants await Fed Chairman Powell’s testimony due tonight.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:00 USD Fed Chair Powell Testifies
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 05:45 | NZD – Trade Balance (MoM) (Jan) | 640M | -2,710M | – |
| 21:30 | USD – Core Durable Goods Orders (MoM) (Jan) | 0.7% | 0.4% | – |
| 23:00 | USD – CB Consumer Confidence (Feb) | 125.4 | 126.3 | – |
| 05:30(Wed) | CrudeOIL – API Weekly Crude Oil Stock | -0.907M | – | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded lower prior breaking support at the 200-MA line. However, MACD histogram that portrays diminishing bearish momentum would suggest the pair to undergo short-term technical correction to trade higher towards its previous low.
Resistance level: 1.3995, 1.4060
Support level: 1.3915, 1.3870
EURUSD
EURUSD, H4: EURUSD was traded within consolidation without an obvious signal from both candlestick pattern formation and MACD histogram. A breakout is required for the pair to grasp a clearer indication on the next direction.
Resistance level: 1.2350, 1.2425
Support level: 1.2265, 1.2130
USDJPY
USDJPY, H1: USDJPY was traded lower prior failure to break resistance level at 107.10. Death-cross as formed by MACD signal line would suggest the pair to extend its losses if breakout at the 200-MA line and support level 106.75 is successful.
Resistance level: 107.10, 107.75
Support level: 106.75, 106.30
CrudeOIL
CrudeOIL, H1: Crude oil price was traded lower prior retracement from trend line of ascending channel. MACD histogram that displays diminishing bullish momentum would suggest the commodity price on bias to trade lower towards minor support level at 63.70 in short term.
Resistance level: 64.55, 66.20
Support level: 63.70, 63.25
GOLD
GOLD_, H1: Gold price was traded higher prior rebound from support level at 1331.05. MACD histogram that portrays diminishing bearish momentum would suggest the commodity price to extend its gains if breakout at the current resistance level 1333.70 is successful.
Resistance level: 1333.70, 1340.00
Support level: 1331.05, 1327.40