04 September 2019 Afternoon Session Analysis
Dollar pared gains amid latest hurdle in trade talk.
Dollar index have fell against its basket of six major currency pairs as trade talk between U.S-China is facing another obstacle. According to recent reports, officials from the U.S and China are having difficulty of setting a schedule for trade talk meetings Besides that, U.S have also rejected a request from China to delay the tariff that have been slapped on $110 billion worth of Chinese imports over the weekend which added further tension between the two powerhouses. On data wise, the greenback was also burdened by the weak data from ISM as the data have showed that the manufacturing activity have slowed and contracted for the first time in 3 years, with the reading of 49.1 against the forecasted reading of 51.0. Dollar index fell 0.08% to 98.81 as of writing. Meanwhile, AUD/USD skyrocketed 0.35% to 0.6778 at the time of writing amid GDP data. According to the Australian Bureau of Statistics, the Australian economy have expended by 0.5% in a quarter basis, which also came in line with market expectation which provide a boost for the sentiment just after RBA maintain its rates recently.
As for commodities market, crude oil price rebound 0.39% to $54.17 per barrel as of writing but still remain pressured following heightening recession fears. As U.S factory activity shrinks for the first time, the data have revived concerns over a potential recession and the negative impact for the commodity demand which continue to weigh on the price. On the other hand, gold price gave up some of its gains and retrace 0.19% to $1544.72 a troy ounce at the time of writing following profit taking after a major rally from market risk.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 CAD BoC Rate Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Composite PMI (Aug) | 53.4 | 53.4 | – |
| 16:30 | GBP – Services PMI (Aug) | 50.7 | – | – |
| 22:00 | CAD – BoC Interest Rate Decision | 1.75 | 1.75 | – |
| 04:30
(05th) |
CrudeOIL- API Weekly Crude Oil Stock | -11.100M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level 99.10. MACD which illustrate bearish bias signal with the formation of death cross suggest the dollar to extend its losses towards the support level 98.65.
Resistance level: 99.10, 99.60
Support level: 98.65, 98.20
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level 1.2090. MACD which illustrate bullish bias signal with the formation of golden cross suggest the pair to extend its losses towards the resistance level 1.2170.
Resistance level: 1.2170, 1.2295
Support level: 1.2090, 1.2015
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level 1.0980. MACD which illustrate bullish bias signal suggest the pair to extend its gains after it breaks above the resistance level 1.0980.
Resistance level: 1.0980, 1.1030
Support level: 1.0930, 1.0860
USDJPY, H4: USDJPY remain traded in a sideway channel. Due to lack of momentum from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 106.75, 107.75
Support level: 105.15, 103.60
AUDUSD, H4: AUDUSD was traded higher while currently testing near the resistance level 0.6780. MACD which illustrate persistent bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 0.6780, 0.6820
Support level: 0.6740, 0.6695
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance level 0.6345. However, MACD which illustrate diminishing bullish momentum suggest the pair to be traded lower as a short term technical correction towards the support level 0.6275.
Resistance level: 0.6345, 0.6400
Support level: 0.6275, 0.6210
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level 1.3335. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses towards the support level 1.3280.
Resistance level: 1.3335, 1.3415
Support level: 1.3280, 1.3225
USDCHF, H4: USDCHF was traded lower while currently testing the support level 0.9865. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a short term technical correction towards the resistance level 0.9905.
Resistance level: 0.9905, 0.9950
Support level: 0.9865, 0.9820
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level 53.05. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its rebound towards the resistance level 55.45.
Resistance level: 55.45, 56.80
Support level: 53.05, 51.65
GOLD_, H4: Gold price remain traded in a sideway channel following recent retracement from the resistance level 1548.10. MAC which illustrate diminishing bullish momentum suggest the commodity to extend its retracement towards the support level 1519.00.
Resistance level: 1548.10, 1588.40
Support level: 1519.00, 1488.85