27 March 2018 Daily Analysis
Greenback falls despite easing US-China tension.
Greenback extended losses against its major peers by 0.48% to 88.63 as of writing despite an easing geopolitical tension in regard to trade war between the world’s two largest economies – U.S. and China. Overnight, a negotiation has started in private between the two parties in seeking a mutually agreeable solution to reduce the trade deficit gap up to $100 billion. Moreover, China has been reported to consider petition by the U.S. to reduce Chinese tariffs on U.S. automobiles while encouraging its people to purchase more U.S. semiconductors as well as approving American companies a greater access to China’s financial sector. All in all, Greenback remained at its bearish side following a rally in the other major currencies especially Pound Sterling. GBP/USD rose 0.79% to $1.4227 amid ongoing optimistic sentiment by market participants following a smooth Brexit- transition deal while a robust UK wage growth added more positive vibes towards another rate hike during Bank of England (BoE)’s meeting minutes in May.
In the commodities market, crude oil price retraced by 0.33 cents to $65.70 per barrel following profit taking by traders while a rise in domestic oil rigs added worries towards growing U.S. output. Likewise, gold price declined by 0.14% to $1352.57 a troy ounce following an ease in US-China trade war.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:00 USD FOMC Member Bostic Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 08:00 | AUD – HIA New Home Sales (MoM) (Feb) | -2.1% | – | – |
| 22:00 | USD – CB Consumer Confidence (Mar) | 130.8 | 131.2 | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | -2.739M | – | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded lower following retracement from trend line of ascending channel. MACD signal line that portrays a death-cross would suggest the pair to undergo short-term technical correction to trade lower towards the support level at 1.4200.
Resistance level: 1.4250, 1.4340
Support level: 1.4200, 1.4130
EURUSD
EURUSD, Daily: EURUSD was traded higher prior gaining its support above the trend line of descending triangle. MACD histogram that portrays increasing bullish momentum would suggest the pair to extend its gains towards the resistance level at 1.2510.
Resistance level: 1.2510, 1.2630
Support level: 1.2210, 1.1970
USDJPY
USDJPY, H4: USDJPY was traded higher after breaking resistance level at 105.20 and the pair is currently testing the next resistance level at 105.60. MACD histogram that portrays increasing bullish momentum would suggest the pair to extend its gains towards the descending trend line if breakout at the current level is successful.
Resistance level: 105.60, 106.50
Support level: 105.20, 104.60
CrudeOIL
CrudeOIL, H1: Crude oil price was traded higher prior rebound from support level at 65.25. MACD histogram that portrays diminishing bearish momentum would suggest the commodity price to extend its gains towards the resistance level at 66.25.
Resistance level: 66.25, 67.45
Support level: 65.25, 64.10
GOLD
GOLD_, H4: Gold price was traded lower prior retracement from resistance level at 1354.75. MACD histogram that shows diminishing bullish momentum would suggest the safe-haven asset price to undergo short-term technical correction to trade lower before continuing its bullish bias.
Resistance level: 1354.75, 1365.45
Support level: 1344.50, 1335.00