27 December 2018 Morning Session Analysis
Dollar rebounds as US stock market rallies.
Greenback strengthened against a basket of six major currencies pair as US stock market rebounds from its low, gaining more than 2 percent from its technology shares while regaining stability for the equity markets. However, market participants remained cautions while waiting for further sentiment in the midst of US political turmoil. Recent market uncertainties include US President Donald Trump Mexico border wall where he emphasized that partial shutdown of the federal government will last until his funds request for the wall is met. Besides that, Trump also criticized the Federal Reserve (Fed) for continuously increasing interest rate while economy is slowing down, blaming the Fed as the main problem for its economy. Dollar index increased by 0.48% to 96.50 as of writing. In other news, pair of USD/JPY retraced from yesterday’s high, falling by 0.24% to 111.10 during early Asian trading session. The safe-haven Yen underwent a large sell-off when investors risk appetite shifted towards the dollar market due to US stocks rebound. As market sentiment improved for the dollar market, investors reacted quickly by shifting their investments from safe-haven assets, causing the Yen to lose last 3 days of its gains.
In the commodities market, crude oil price retraced by 0.82% to $46.20 after rebounding as much as 8%, its largest one-day increased since 30th November 2016 amid improved sentiment arising from US stocks market. However, market sentiment remains cloudy for the crude as market uncertainties still exist while investors will focus on the impact of OPEC production cut early next month. On the other hand, gold price rebounds by 0.28% to $1270.50 a troy ounce after falling from its higher levels due to US stocks rebound. Sentiment for the gold market remains strong as global uncertainties still haunts market participants.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 21:30 | USD – Initial Jobless Claims | 214K | 217K | – |
| 23:00 | USD – CB Consumer Confidence (Dec) | 135.7 | 133.7 | – |
| 23:00 | USD – New Home Sales (Nov) | 544K | 560K | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower following prior retracement from the resistance level 96.55. MACD which illustrate diminishing bullish momentum suggest index to extend its retracement towards the support level 96.25.
Resistance level: 96.55, 96.85
Support level: 96.25, 96.00
GBPUSD, H4: GBPUSD remained trade in an ascending channel while currently testing near the lower level of the channel. MACD which illustrate bearish signal suggest the pair to extend its losses after closing below the channel.
Resistance level: 1.2700, 1.2740
Support level: 1.2660, 1.2610
EURUSD, H1: EURUSD was traded higher following prior rebound from the support level 1.1350. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its rebound towards the resistance level 1.1395.
Resistance level: 1.1395, 1.1435
Support level: 1.1350, 1.1320
USDJPY, H1: USDJPY was traded lower while currently testing near the support level 110.90. MACD which display diminishing bearish momentum suggest the pair to undergo short-term technical correction and rebound from the support level.
Resistance level: 111.35, 111.65
Support level: 110.90, 110.60
AUDUSD, H1: AUDUSD was traded lower following prior retracement from the resistance level 0.7070. MACD which illustrate starting bearish momentum and the formation of death cross suggest the pair to extend its losses towards the support level 0.7035.
Resistance level: 0.7070, 0.7100
Support level: 0.7035, 0.7000
NZDUSD, H4: NZDUSD was traded lower while currently testing near the upward trend line (red) and support level near 0.6700. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses after closing below the support level and upward trend line.
Resistance level: 0.6745, 0.6785
Support level: 0.6700, 0.6655
USDCAD, H1: USDCAD was traded higher following prior rebound from the support level 1.3565. MACD which display diminished bearish momentum suggest the pair to extend its rebound towards the resistance level 1.3610.
Resistance level: 1.3610, 1.3645
Support level: 1.3565, 1.3530
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9920. MACD which display diminishing bullish momentum suggest the pair to extend its losses after breaking below the support level.
Resistance level: 0.9960, 1.0000
Support level: 0.9920, 0.9875
CrudeOIL, H1: Crude oil price was traded lower following prior retracement from the resistance level 47.00. MACD which illustrate diminishing bullish signal suggest the commodity to extend its retracement towards the support level 45.20.
Resistance level: 47.00, 48.50
Support level: 45.20, 43.55
GOLD_, H1: Gold price was traded higher following prior rebound from the support level 1267.00. MACD which display diminishing bearish momentum suggest gold to extend its rebound towards the resistance level 1273.50.
Resistance level: 1273.50, 1278.00
Support level: 1267.00, 1262.90