10 October 2017 Daily Analysis
Greenback loses its momentum, Gold price soars higher.
Dollar index was traded lower against a trade-weighted basket of the other major currencies by 0.07% to 93.55, following the latest geopolitical tension aroused when North Korea was reported to prepare a long-range missile test as a celebration to the founding of Pyongyang’s ruling party. In addition, the Greenback took a knock against Euro after data shown that German industrial output in August recorded its largest monthly increase in more than six years. A call from a member from the European Central Bank (ECB) executive board, Sabine Lautenschlaeger to roll back asset purchases in 2018 has also lead to a surge in Euro currency. Overall, according to Masafumi Yamamoto, chief forex strategist at Mizuho Securities, the dollar is still well supported and it is not easy to sell Greenback at the moment following a steady improve in U.S. wages as released on last Friday. Meanwhile, USD/JPY was last quoted at 112.66, down 0.02%; GBP/USD traded at 1.3168, up 0.2%; AUD/USD was traded higher at 0.7787, up 0.44%.
In the commodity market, crude oil price remains stable at 49.69 with an increase of 0.22% as OPEC mentioned that the market is undergoing rebalancing while U.S. production stayed offline prior to Hurricane Nate. Otherwise, gold prices continue to surge higher by 0.48% to $1287.90 as an uptick in geopolitical uncertainty increases the demand for safe-haven asset.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 USD FOMC Member Kashkari Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 08:30 | AUD – NAB Business Confidence (Sep) | 5 | 6 | 7 |
| 14:00 | EUR – German Trade Balance (Aug) | 19.5B | 20.3B | – |
| Tentative | CNY – New Loans | 1090.0B | 1230.0B | – |
| 16:30 | GBP – Manufacturing Production (MoM) (Aug) | 1.9% | 1.9% | – |
| 20:15 | CAD – Housing Starts (Sep) | 223.2K | 210.0K | – |
| 20:30 | CAD – Building Permits (MoM) (Aug) | -3.5% | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded lower prior its retracement from resistance level at 1.3175. However, upward slope as portrayed by MACD signal line suggests the pair on higher tendency to trade higher, testing back the said resistance level.
Resistance level: 1.3175, 1.3240
Support level: 1.3025, 1.2940
EURUSD
EURUSD, H4: EURUSD was traded higher prior breaking above resistance level at 1.1740. Upward slope of MACD signal line suggests the pair to continue its momentum to trade higher toward the next resistance level at 1.1820.
Resistance level: 1.1820, 1.1870
Support level: 1.1700, 1.1615
USDJPY
USDJPY, H4: USDJPY was traded in consolidation within resistance level at 113.00 and support level at 112.35. It is suggested to wait for breakout to occur following absent of obvious signal from both price action and MACD indicator.
Resistance level: 113.00, 113.55
Support level: 112.35, 111.65
CrudeOIL
Crude OIL, H4: Crude oil price was traded higher following its rebound from support level at 49.10 and support by 200-MA line. Positive divergence as shown by MACD histogram suggests crude oil price to trade higher toward the resistance level at 49.85.
Resistance level: 49.85, 50.80
Support level: 49.10, 48.30
GOLD
GOLD_, H1: Gold price was traded higher following its successful breaking above resistance level at 1278.25 and 200-MA line. Engulfing candlestick pattern and diminishing bearish momentum as portrayed by MACD histogram suggest gold price to trade higher toward the next resistance level at 1290.85.
Resistance level: 1290.85, 1298.30
Support level: 1278.25, 1272.55