27 December 2019 Morning Session Analysis
Yen slumped amid to risk-on sentiment
The U.S dollar rose against the Japanese Yen on Thursday as optimism of easing trade tensions had spurred the risk-on sentiment in the market, which insinuating a sell-off for the safe-haven currencies such as Japanese Yen. According to Reuters, Beijing said on Wednesday that it is in close touch with Washington on a trade deal signing ceremony. Besides that, Japanese Yen received some further sell-off amid to the dovish statement provided by the Bank of Japan. According to Reuters, Bank of Japan Governor Haruhiko Kuroda said on Thursday that the they would be continually eyeing on the economic progression in Japan; However, the central bank would ease the monetary policy further without hesitation if the momentum toward its 2% inflation goal came under threat. On the other hand, the Australian dollar surged yesterday amid to the positive prospect for the resolution of trade war, spurring some demand for the risk sensitive currencies. As of writing, USD/JPY depreciated by 0.05% to 109.54 while AUD/USD surged 0.01% to 0.6945.
In the commodities market, the oil market edged higher on Thursday as market participants expected the resolution of trade war would enhance the global economic growth while spurring the demand for the commodity in the future. In fact, according to American Petroleum Institute (API), the U.S. crude oil inventories declined 7.9 million barrels for the week ending December 20 versus the previous rise of 4.7 million barrels, which also providing some bullish support for the commodity. On the other hand, gold price surged on yesterday as investors continued to seek out the safe-haven metal as an insurance to a potential slide in equity market during the early 2020. As of writing, crude oil price slumped 0.08% to $61.66 per barrels while gold price was traded flat at $1510.88 per troy ounces.
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 Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 23:30 | CrudeOil – Crude Oil inventories | -1.085M | – | — |
| 02:00
28th |
CrudeOIL – U.S. Baker Hughes Oil Rig Count | 685 | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 97.05. However, MACD which illustrated increasing bullish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 97.55, 98.15
Support level: 97.05, 96.50
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.2950. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3115.
Resistance level: 1.3115, 1.3225
Support level: 1.2950, 1.2835
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.1075. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.1125.
Resistance level: 1.1125, 1.1160
Support level: 1.1075, 1.1025
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 109.65. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 109.25.
Resistance level: 109.65, 109.95
Support level: 109.25, 108.90
AUDUSD, Daily: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6910. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6965.
Resistance level: 0.6965, 0.7020
Support level: 0.6910, 0.6850
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.6680. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6680, 0.6725
Support level: 0.6620, 0.6560
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.3105. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3165, 1.3220
Support level: 1.3105, 1.3050
USDCHF, Daily: USDCHF was traded higher following prior rebound from the support level at 0.9800. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.9870.
Resistance level: 0.9870, 0.9940
Support level: 0.9800, 0.9730
CrudeOIL, Daily: Crude oil price was traded higher following prior breakout above the previous resistance level at 60.70. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward the resistance level at 62.60.
Resistance level: 62.60, 63.70
Support level: 60.70, 58.85
GOLD_, Daily: Gold price was traded higher while currently testing the resistance level at 1513.30. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1513.30, 1531.60
Support level: 1488.25, 1462.60