31 December 2018 Morning Session Analysis
Dollar falls amid poor Pending Home Sales data.
Dollar index weakened against a basket of six major currency pairs after the announcement of US Pending Home Sales data last Friday. The data which measures the purchasing activity of properties had an actual reading of -0.7%, missing economists’ expectations of 0.7% indicated a slowdown in demand for properties. The poor data boosted investors expectations of a slowdown in global economy as well as US economy itself, spiraling fears for investors that the US Federal Reserve (Fed) will pause future rate hikes. Current outlook for the dollar market remained cloudy ahead of New Year holidays while investors will keep their eye on this Friday’s Nonfarm Payrolls data to further determine the momentum for the dollar. As of writing, dollar index fell by 0.04% to 95.90. In other news, pair of EUR/USD was up by 0.04% to 1.1445 amid the approval of Italian budget deficit. The Italian parliament approved a revised budget deficit for 2019, from a 2.4% GDP to 2.04% just before the deadline expired, allowing the country to avoid sanctions from the European Commission.
In the commodities market, crude oil price increased by 0.85% to $45.45 per barrel during early Asian trading session. Current outlook for crude oil market remained poor as inventory reports from the EIA and API both reported higher than expected inventory level. Besides that, US Baker Hughes Oil Rig Count also reported an increased in 2 oil rigs over the weekend. Investors are currently waiting for OPEC production cut to be taken into effect early next month. On the other hand, gold price fell by 0.16% to $1278.60 a troy ounce amid market uncertainties ahead of New Year holidays.
Today’s Holiday Market Close
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Today’s Highlight Events
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Today’s Highlight Economic Data
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level 95.70. MACD which illustrate diminishing bearish momentum suggest dollar to extend its rebound towards the resistance level 96.00.
Resistance level: 96.00, 96.25
Support level: 95.70, 95.25
GBPUSD, H4: GBPUSD remained traded in a sideway channel while currently testing near the resistance level 1.2700. MACD which display diminishing bullish signal suggest the pair to undergo technical correction and retrace from its higher levels.
Resistance level: 1.2700, 1.2740
Support level: 1.2660, 1.2610
EURUSD, H4: EURUSD was traded lower while currently testing the support level 1.1435. MACD which illustrate starting bearish momentum suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 1.1470, 1.1520
Support level: 1.1435, 1.1395
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level 110.20. MACD which illustrate diminishing bearish signal suggest the pair to extend its rebound towards the resistance level 110.60.
Resistance level: 110.60, 110.90
Support level: 110.20, 109.75
AUDUSD, H1: AUDUSD was traded higher following prior rebound from the support level 0.7035. MACD which display bullish bias and the formation of golden cross suggest the pair to extend its gains towards the resistance level 0.7070.
Resistance level: 0.7070, 0.7100
Support level: 0.7035, 0.7000
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level 0.6700. MACD which illustrate ongoing bullish momentum suggest the pair to extend its rebound towards the resistance level 0.6745.
Resistance level: 0.6745, 0.6785
Support level: 0.6700, 0.6655
USDCAD, H4: USDCAD was traded lower while currently testing near the support level 1.3610. MACD which display bearish signal suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 1.3645, 1.3680
Support level: 1.3610, 1.3565
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level 0.9835. MACD which display diminishing bearish momentum suggest the pair to extend its rebound towards the resistance level 0.9875.
Resistance level: 0.9875, 0.9920
Support level: 0.9835, 0.9785
CrudeOIL, H1: Crude oil price was traded higher following prior breakout above the previous resistance level 45.20. MACD which display bullish signal and the formation of golden cross suggest the commodity to extend its gains towards the resistance level 47.00.
Resistance level: 47.00, 48.50
Support level: 45.20, 43.55
GOLD_, H1: Gold price was traded lower while currently testing the support level 1278.00. MACD which illustrate bearish momentum suggest gold to extend its losses after breaking below the support level.
Resistance level: 1283.00, 1288.10
Support level: 1278.00, 1273.50