28 January 2019 Afternoon Session Analysis
Greenback plagued by doves and risks.
Greenback extended its losses against other major peers on Monday while market participants shifts their attention towards the Federal Reserve monetary policy meeting which is scheduled later this week. As of writing, the dollar index was down 0.10% to 95.33 against a basket of six major currencies. Federal Reserve officials will be meeting this week in between 29th till 30th January while the market is widely expecting Chairman Jerome Powell to acknowledge growing downside risks which surrounds the US economy. In addition, greenback received further bearish pressure following a deal to reopen the US government following prolonged shutdown since December last year. The reopening of US government while coupled with bearish outlook upon its economy has shifted market’s focus towards other risky assets such as pound sterling and euro. On the other hand, pair of GBP/USD rose 0.03% to 1.3204 during Asian trading session. The currency received some bullish support after media reported that the Northern Ireland’s Democratic Unionist Party had privately decided to offer condition backing for British Prime Minister Theresa May’s Brexit deal.
As for commodities market, crude oil price plunged 0.34% to $53.12 per barrel. Oil prices slips on Monday afternoon after earnings report in China’s industrial firms shrank for second consecutive month in December due to falling prices and sluggish factory activities. As China is the world’s second largest oil consumer, any possible signs of economic slowdown in the region may lead to the downfall of oil prices. On the other hand, gold price slipped 0.05% to $1,302.72 a troy ounce following minor technical correction.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22.00 EUR ECB President Draghi Speaks
22.30 GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher following prior rebound from the support level of 95.30. MACD which illustrate diminished downward momentum suggests the index to be traded higher in short-term as technical correction.
Resistance level: 95.60, 95.75
Support level: 95.30, 95.00
GBPUSD, H1: GBPUSD was traded lower following prior retrace from the resistance near 1.3230. MACD which has formed a bearish signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3230, 1.3315
Support level: 1.3125, 1.2990
EURUSD, H1: EURUSD was traded lower following prior retracement near the resistance of 1.1435. MACD which has formed a death cross signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1435, 1.1485
Support level: 1.1390, 1.1350
USDJPY, H4: USDJPY remains traded within a sideways channel while currently testing near the bottom level. MACD which has formed a death cross signal suggests the pair to advance further downwards after successfully closing below 109.35.
Resistance level: 109.90, 110.25
Support level: 109.35, 108.95
AUDUSD, H1: AUDUSD was traded lower following prior retracement from its prior high level. MACD which shows diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7220, 0.7255
Support level: 0.7175, 0.7145
NZDUSD, H1: NZDUSD was traded lower following prior retracement from previous high. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6890, 0.6940
Support level: 0.6840, 0.6780
USDCAD, H1: USDCAD was traded higher while currently testing near the resistance of 1.3220. MACD which has formed a golden cross signal suggests the pair to extend its gains after a successful closure above 1.3220.
Resistance level: 1.3220, 1.3280
Support level: 1.3175 , 1.3115
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level of 0.9990. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 0.9905.
Resistance level: 0.9990, 1.0045
Support level: 0.9905, 0.9835
CrudeOIL, H1: Crude oil price remains traded within a narrowing triangle following prior retracement from the top level. MACD which illustrate bearish signal suggests its prices to be traded lower in short-term, towards the direction of 52.80.
Resistance level: 53.75, 54.40
Support level: 52.80, 51.85
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance of 1305.40. MACD which begins to form a death cross signal suggests its prices to be traded lower in short-term as technical correction.
Resistance level: 1305.40, 1313.80
Support level: 1295.55, 1287.35