19 September 2018 Daily Analysis
Dollar falls on China’s retaliation.
Greenback was losing its strength by 0.05% to 94.10 against its basket of six major currencies at early Asian trading session amid China’s retaliation yesterday on US President Donald Trump announcement of 10% tariff on $200 billion of Chinese goods during Monday. Despite the threat from Trump’s twitter post where additional tariff on $267 billion Chinese goods will be imposed if China were to retaliate, China had also announced new tariff on $60 billion US goods. Increasing tension of the trade war has caused investors to lose confident towards the dollar in fear of Trump’s next move in trade war. Attention from global markets will now be placed on the outcome and situation of the trade war which will determined the future movement of the dollar. In other news, Canada’s Loonie continued to strengthened by 0.02% to 1.2970, falling to a new low since 30th August caused by positive sentiment from yesterday releasement of economic data Manufacturing Sales with an actual reading of 0.9% higher than the forecasted data of 0.6%. Analyst from RBC stated that although there are concerns about possible trade disruptions between the US and Canada, Canada’s manufacturing sector was still able to perform better.
As for the commodities market, crude oil edged up by 0.19% to $69.60 per barrel amid China’s retaliation to impose tariff on $60 billion of US goods. On the other hand, gold price increased by 0.45% to $1203.50 per troy ounce as dollar index continues to plunge.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 EUR ECB President Draghi Speaks
Todays’ Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – CPI (YoY) (Aug) | 2.5% | 2.4% | – |
| 20:30 | USD – Building Permits (Aug) | 1.311M | 1.310M | – |
| 22:30 | USD – Crude Oil Inventories | -5.296M | -2.741M | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level 1.3180. MACD which illustrate bearish momentum and the starting formation of a death cross suggest the pair to extend its losses after a breakout below the support level 1.3145.
Resistance level 1.3180, 1.3210
Support level: 1.3145, 1.3085
EURUSD
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level 1.1690. MACD which display bearish momentum and the formation of death cross suggest the pair to extend its losses towards the support level 1.1645.
Resistance level: 1.1690, 1.1730
Support level: 1.1645, 1.1615
USDJPY
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level 112.20. Recent price action and MACD which illustrate bullish signal and the formation of golden cross suggest the pair to extend its gains towards the resistance level 112.60.
Resistance level: 112.60, 113.10
Support level: 112.20, 111.95
CrudeOIL
CrudeOIL, H4: Crude oil price was recently traded higher while currently testing the resistance level 69.55. MACD which illustrate bullish momentum and the formation of golden cross suggest the commodity to extend its gains after a breakout above the resistance level 69.55.
Resistance level: 69.55, 70.45
Support level: 68.55, 67.30
GOLD
GOLD, H4: Gold price remain traded in a sideway channel. Due to lack of signal from the MACD, further confirmation must be attained such as a breakout above the resistance level 1203.30 or the support level 1196.00 before entering the market.
Resistance level: 1203.30, 1207.80
Support level: 1196.00, 1191.10