28 July 2017 Daily Analysis
Could GDP fortify the dollar’s comeback?
Japanese yen held gains on Friday following the release of economic data which covers consumer prices and household demands. Pair of USD/JPY sheds 0.26% to 110.96. In Japan, household spending shows a pickup of 2.3% in June, exceeding expected rise of only 0.6%. Likewise, higher inflationary pressure was seen with Tokyo Core CPI which scores 0.2% while National CPI remained subdued at only 0.4%. These readings were in line with Bank of Japan’s projection after they announced to push back the timing of achieving 2% inflation target during last meeting. On the other hand, US dollar hovers in a tight range while last quoted around 93.70. Overnight, US dollar pushed higher despite a series of mixed economic data which signals potential slowdown in their economy. A rather optimistic durable goods data has offset the pessimism in jobs market as initial jobless claims undershot its forecast, levitating the dollar away from 14-months low.
As for commodities, crude oil price eases slightly by 0.08% to $49.00 while further signal on demand is expected to be the main catalyst for its momentum. Concurrently, gold price was last seen around $1,259.32 as the market remains steady prior to the release of US economic growth data later tonight.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:00 | EUR – German CPI (MoM) (Jul) | 0.2% | 0.2% | – |
| 20:30 | USD – GDP (QoQ) (Q2) | 1.4% | 2.6% | – |
| 20:30 | CAD – GDP (MoM) (May) | 0.2% | 0.2% | – |
| 22:00 | USD – Michigan Consumer Sentiment (Jul) | 93.1 | 93.1 | – |
| 01:00 | Crude Oil – Baker Hughes Oil Rig Count | 764 | – | – |
GBPUSD
GBPUSD, H4: GBPUSD remains traded within a narrowing upward channel following prior rebound from the bottom level. Stochastic Oscillator which begins to form a rebound signal from oversold region suggests further upside bias for GBPUSD to advance towards 1.3100.
Resistance level: 1.3100, 1.3160
Support level: 1.3050, 1.3000
EURUSD
EURUSD, H4: EURUSD were traded higher following prior rebound while closing above the 20-MA line (red). Such price movement suggests EURUSD to be traded higher and retest at the resistance level of 1.1720.
Resistance level: 1.1720, 1.1815
Support level: 1.1620, 1.1540
USDJPY
USDJPY, Daily: USDJPY were traded within an ascending triangle while currently testing near the strong support level of 110.85. MACD histogram which illustrates substantial downward signal suggests USDJPY to extend its losses after closing below 110.85.
Resistance level: 111.85, 112.85, 114.30
Support level: 110.85, 110.00
CrudeOIL
CrudeOIL, Daily: Crude oil price has recently broke the top level of downward channel, signaling a change in trend direction to move further upwards. Both MA lines which continues to narrow upwards suggests its prices to advance towards the target of 50.00.
Resistance level: 50.00, 51.50
Support level: 48.50, 47.00
GOLD
GOLD_, H4: Gold price was traded higher following prior rebound from the 20-MA line (red). A successful closure above the resistance level of 1261.10 would suggest gold price to extend its uptrend towards the following target at 1270.00 thereafter.
Resistance level: 1261.10, 1270.00
Support level: 1250.30, 1239.55