30 May 2017 Daily Analysis
Euro-bull snapped as political uncertainty arises.
Greenback held firmed on Tuesday while regaining its position against euro and sterling which were pressured by political uncertainties in the eurozone and UK. The dollar index was up 0.30% to 97.55 against six major peers. Traders had a subdued start for the week with financial markets in US and UK closed for holidays on Monday. Likewise, market participants will be looking ahead to Friday’s highly anticipated US Nonfarm Payrolls report which is expected to set near-term market sentiment. A strong US jobs report would cement overall expectation for a rate hike by US Federal Reserve during its next meeting in June. Otherwise, euro slipped 0.35% to $1.1127 after former Italian Prime Minister Matteo Renzi said that it is plausible for Italy’s next election to be held around the same time as Germany, which is scheduled on September. “A selloff was evoked after the market begun to realize there’s political uncertainty in Italy as Renzi’s comment are in favor for snap election,” said Masafumi Yamamoto, chief forex strategist.
In the commodities market, crude oil price rose 0.26% to $49.93 as summer driving season in United States suggested strong fuel demand for the months ahead. US demand for transport fuels such as gasoline and diesels tend to rise significantly during summer as families go on holidays and travel across the country. As for safe haven gold, price of the yellow metal rose 0.14% to $1,269.36 while investors await US employment report due this Friday.
Today’s Holiday Market Close
Time Market Event
All Day CNY China – Dragon Boat Festival
Today’s Highlight Events
Time Market Event
Today’s Highlight Economy Data
|Time||Nation & Data||Previous||Forecast||Actual|
|09:30||AUD – Building Approvals (MoM) (Apr)||-13.4%||3.0%||4.4%|
|20:00||EUR – German CPI (MoM) (May)||0.0%||-0.1%||–|
|20:30||USD – Personal Spending (MoM) (Apr)||0.0%||0.4%||–|
|22:00||USD – CB Consumer Confidence (May)||120.3||119.8||–|
GBPUSD, Daily: GBPUSD was traded lower while remained hovering near the 23.6 Fibonacci level of 1.2795. However, as the MACD histogram continues to illustrate substantial downward signal, a successful closure below the support level of 1.2795 would suggest GBPUSD to move further downwards.
Resistance level: 1.3045, 1.3180
Support level: 1.2975, 1.2640
EURUSD, H4: EURUSD has recently broke out from the bottom level of descending triangle, signaling a change in trend direction to move further downwards. As both MA lines continue to narrow downwards, EURUSD is suggested to move lower towards the target of support level at 1.1100.
Resistance level: 1.1165, 1.1265
Support level: 1.1100, 1.1050
USDJPY, H4: USDJPY has recently formed a head and shoulders pattern, while currently testing at the neckline of 110.85. A closure below the neckline would suggest USDJPY to extended its losses to the next target of support level at 110.20.
Resistance level: 111.45, 112.10
Support level: 110.85, 110.20
CrudeOIL, H4: Crude oil price was traded lower following prior retrace from the resistance level of 50.00 and currently testing in between both moving average line. A closure below the 20-moving average line (red), would suggest crude oil price to advance further down, towards the target of support level at 48.85.
Resistance level: 50.00, 52.00
Support level: 48.85, 47.85
GOLD_, H4: Gold price has recently break out from the top level of ascending triangle, signaling a change in trend direction to move further upwards. It is expected to extend its uptrend after breaking the resistance level of 1271.00
Resistance level: 1271.00, 1278.00
Support level: 1261.00, 1253.80, 1246.00