27 July 2018 Daily Analysis
Euro swims in red as Draghi strikes again.
Greenback stood tall against all other major peers on Thursday following broad sell off on the Euro amid dovish stance delivered by the European Central Bank (ECB) President Mario Draghi. As of writing, dollar index was quoted up 0.45% to 94.50 while pairing of EUR/USD slumped 0.60% to $1.1638. In a highly anticipated ECB policy meeting on yesterday, Draghi postulate that it is not a necessity to “modify or add new language” into the bank’s interest rate forward guidance while reiterating to keep their rates unchanged up until summer of 2019. His seemingly dovish take on interest rate hike has delivered a severe bearish blow to the Euro as the signal suggests the ECB would be rather unlikely to hike their interest rate before October 2019. On the other hand, greenback remained resilient throughout the North American trading session despite weaker-than-expected economic data as investors place higher expectation towards their domestic economic growth for second quarter. According to US Commerce Department, Core Durable Goods Orders missed economist forecast with 0.4% versus 0.5% seen for the month of June.
Over to the commodities market, crude oil price settled up 0.03% to $69.50 per barrel as Saudi Arabia halts their oil shipment through Red Sea straits after two of its oil tankers were reportedly attacked by Houthi rebels. Otherwise, gold price ticked down 0.06% to $1,223.69 a troy ounce as stronger dollar places bearish pressure on the yellow metal.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 07:30 | JPY – Tokyo Core CPI (YoY) (Jul) | 0.7% | 0.7% | 0.8% |
| 20:30 | USD – GDP (QoQ) (Q2) | 2.0% | 4.1% | – |
| 20:30 | USD – GDP Price Index (QoQ) (Q2) | 2.2% | 2.3% | – |
| 22:00 | USD – Michigan Consumer Sentiment (Jul) | 97.1 | 97.1 | – |
| 01:00 | CrudeOIL – US Baker Hughes Oil Rig Count | 858 | – | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded lower following prior breakout from the upward trendline. Both MA line which continues to expand downward suggests the pair to extend its losses towards the direction of support level near 1.3070.
Resistance level: 1.3130, 1.3180
Support level: 1.3070, 1.3000
EURUSD
EURUSD, H1: EURUSD was traded lower following prior breakout from the support level near 1.1675. Both MA line which expand downward suggests bearish bias. However, a close below 1.1640 is required to attain further confirmation.
Resistance level: 1.1675, 1.1710
Support level: 1.1640, 1.1620
USDJPY
USDJPY, H1: USDJPY remained under pressure following prior retracement from the downward trendline. MACD histogram which illustrate diminished upward momentum suggests the pair to extend its losses after closing below the 60-MA line (green).
Resistance level: 111.25, 111.95
Support level: 110.70, 110.15
CrudeOIL
CrudeOIL, H1: Crude oil price remains traded within an ascending channel while currently testing at the lower level. MACD histogram which has formed negative divergence signal suggest the commodity price to extend its losses towards the bottom level of the channel.
Resistance level: 70.00, 70.70
Support level: 69.30, 68.85
GOLD
GOLD_, H1: Gold price was traded higher following prior rebound from the upward trendline. Although MACD illustrate bearish signal, close below the trendline and support of 1222.00 is required to attain further confirmation.
Resistance level: 1226.50, 1233.70
Support level: 1222.00, 1216.00