28 January 2019 Morning Session Analysis
Dollar tumbled following more dovish Fed expectations.
Dollar index decline sharply against its basket of six major rival currencies on Friday following expectations of Federal Reserve will turn more dovish note on this week’s meeting. According to reports from Wall Street Journal, the Fed is widely expected to leave its balance sheet program and policy rate unchanged this week which slump in global markets in late last year has seen Fed is leaning to more dovish note. Besides that, ongoing shutdown of government continues to weight on the market, which dragging the dollar further. Dollar index slumped 0.03% to 95.40 as of writing. Meanwhile, EURUSD recovers 0.03% to 1.1411 as of writing despite weaker than expected data on Friday. Although growth data German IFO Business Climate came in weaker than expected reading with 99.1 compared to 100.7, euro made a strong comeback as dovish expectation on U.S Fed on Friday have bounced the euro sentiment back.
In the commodities market, crude oil price slumped 0.13% to 53.41 at the time of writing following increased rig oil count, According to reports from Bakers Hughes, oil rig have increased to 862, which added 10 more facilities from its previous reading which signaling the prospect of rising crude oil output. On the other hand, gold price skyrocketed 0.15% to 1302.85 as of writing following weaker dollar dragged by dovish FED expectations.
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, H4: Dollar index was traded lower following prior breakout below the support level 95.60. MACD which illustrate persistent bearish momentum suggest the pair to extend it losses towards the support level 95.05.
Resistance level: 95.60, 96.05
Support level: 95.05, 94.60
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level 1.3170. However, MACD which illustrate diminishing bullish momentum suggest the pair to undergo a short term technical correction towards the support level 1.3170.
Resistance level: 1.3250, 1.3350
Support level: 1.3170, 1.3085
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level 1.1415. MACD which illustrate bullish momentum with the formation of golden cross suggest the pair to extend its gains after it breaks above the resistance level 1.1415.
Resistance level: 1.1415, 1.1480
Support level: 1.1350, 1.1310
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level 110.00. MACD which illustrate continuous bearish momentum suggest the pair to extend its losses towards the support level 109.10.
Resistance level: 110.00, 111.40
Support level: 109.10, 107.85
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the resistance level 0.7155. MACD which illustrate bullish bias with the formation of golden cross suggest the pair to extend its gains towards the resistance level 0.7230.
Resistance level: 0.7230, 0.7270
Support level: 0.7155, 0.7115
NZDUSD, H4: NZDUSD was traded higher following recent breakout above the previous resistance level 0.6840. MACD which illustrate persistent bullish momentum suggest the pair to extend its gains towards the resistance level 0.6875.
Resistance level: 0.6875, 0.6910
Support level: 0.6840, 0.6800
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level 1.3240. MACD which illustrate bearish momentum with the formation of death cross suggest the pair to extend its losses towards the support level 1.3190
Resistance level: 1.3240, 1.3300
Support level: 1.3190, 1.3060
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level 0.9910. MACD which illustrate persistent bearish bias signal suggest the pair to extend its losses towards the support level 0.9910.
Resistance level: 0.9950, 0.9985
Support level: 0.9910, 0.9855
CrudeOIL, H4: Crude oil price was traded lower while currently testing near the support level 52.85. However, due to lack of signal from MACD, it is suggested to wait until further signal appear such as breakout above or below the closest resistance or support level before entering the market.
Resistance level: 54.55, 57.80
Support level: 52.85, 50.30
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level 1296.85. MACD which illustrate bullish momentum suggest the commodity to extend its gains towards the resistance level 1309.00
Resistance level: 1309.00, 1325.75
Support level: 1296.85, 1287.05