18 September 2018 Daily Analysis
Dollar bull feeds on new Trump tariff.
Greenback managed to recover its strength by 0.09% to 94.10 at early Asian trading session after the announcement of 10% tariff imposed on $200 billion worth of Chinese goods by US President Donald Trump and threatened to impose another tariff on $267 billion of additional China imports if China were to take retaliatory action against US. The imposed of tariff had since boosted the dollar as it indicates a better economy for the US with emerging domestic market opportunity as well as increased revenue on import taxes. Besides that, Trump had mentioned in his Twitter yesterday that he was ready to impose tariff on trading partners’ imports if they were to go against the US or if they fail to make a fair deal. In other news, pound sterling continues to edge up by 0.02% to 1.3150 after comment from EU’s chief negotiator Michel Barnier where talks between the European Union and Britain regarding Brexit is going well and being conducted in good cooperation. As the Brexit is coming close to its deadline, investors are reacting towards any sign of news regarding Brexit, thus making the pair dependent on the current situation of Brexit.
As for the commodities market, crude oil continues to fall by 0.20% to $68.39 per barrel after the announcement of 10% tariff imposed on Chinese goods by US President Donald Trump which caused investors to worry on the impact it brings to the crude oil market. On the other hand, gold price also decreased by 0.21% $1198.65 per troy ouns as the dollar increased amid the tariff announcement.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16:15 EUR ECB President Draghi Speaks
Todays’ Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | CAD – Manufacturing Sales (MoM) (Jul) | 1.1% | 0.6% | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level 1.3145. Recent price action and MACD which display a bullish momentum and the formation of a golden cross suggest the pair to extend its gains towards the resistance level 1.3180.
Resistance level: 1.3180, 1.3210
Support level: 1.3145, 1.3085
EURUSD
EURUSD, H1: EURUSD was traded higher while currently testing the resistance level 1.1690. MACD which illustrate a bearish momentum and the starting formation of a golden cross suggest the pair to extend its gains after a breakout above the resistance level 1.1690.
Resistance level: 1.1690, 1.1730
Support level: 1.1645, 1.1615
USDJPY
USDJPY, H1: USDJPY was traded higher while currently testing the resistance level 111.95. Recent price action and MACD which illustrate a bullish momentum and the formation of a golden cross suggest the pair to extend its gains after a breakout above the resistance level 111.95.
Resistance level: 111.95, 112.20
Support level: 111.65, 111.25
CrudeOIL
CrudeOIL, H1: Crude oil price was recently traded lower following prior breakout below the previous support level 68.55. MACD which illustrate a bearish momentum suggest the commodity to extend its losses towards the support level 67.30.
Resistance level: 68.55, 69.55
Support level: 67.30, 66.80
GOLD
GOLD, H1: Gold price was lower following prior breakout below the previous support level 1198.95. Recent price action and MACD which display a bearish momentum and the formation of a death cross suggest the commodity to extend its losses towards the support level 1196.00.
Resistance level: 1198.95, 1203.00
Support level: 1196.00, 1191.10