22 October 2018 Morning Session Analysis
Saudi rift dampens market risk sentiment.
Greenback extended its losses on Monday following weaker-than-expected housing data from the United States while investors digests the latest rift that surrounds Saudi Arabia. Last Friday, National Associations of Realtors reported that the existing home sales for the month of September slipped to 5.15 million, lower than economist forecast of 5.30 million. The sale of existing homes fell for sixth consecutive month with September notching its largest decline in more than two years’ time. In addition, recent rift in between Saudi Arabia and other global leaders has tempered investor’s sentiment towards risky assets, inducing higher risk aversion in the financial market. Following the death of Saudi Arabia prominent journalist Jamal Khashoggi, Saudi crown prince faced increasing threat of US sanction. Although US President Donald Trump and others in his administration offered limited criticism, Treasury Secretary Steven Mnuchin canceled his participation in a Saudi investment conference this week, mounting the pressure between both nations. On the other hand, Canadian dollar slumped further following disappointing Canadian retail sales and inflation data which may change Bank of Canada’s hawkish view towards the economy. As of writing, dollar index was down 0.04% to 95.37 while pairing of USD/CAD rose 0.02% to 1.3106.
As for commodities market, crude oil price slumped 0.30% to $69.28 per barrel. Oil price experienced tremendous bearish pressure for the last two weeks following surging stockpiles and a rise in drilling activity in the US that may lead to higher supply in the market. On the other hand, gold price notched up 0.19% to $1,228.35 a troy ounce following higher geopolitical tension in between US and Saudi Arabia.
Today’s Holiday Market Close
Time Market Event
All Day NZD New Zealand – Labour Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 20:30 | CAD – Wholesale Sales (MoM) (Aug) | 1.5% | 0.1% | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher following prior rebound from the upward trendline. MACD which illustrate diminishing downward momentum suggests the index to be traded higher in short-term towards 95.50.
Resistance level: 95.50, 95.75
Support level: 95.00, 94.65
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the downward trendline. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term, towards the support level at 1.3050.
Resistance level: 1.3090, 1.3130
Support level: 1.3050, 1.3015
EURUSD, H1: EURUSD was traded lower while currently testing near the support level of 1.1495. MACD which illustrate diminishing upward momentum suggests the pair to extend its losses after closing below the target of 1.1495.
Resistance level: 1.1550, 1.1570
Support level: 1.1495, 1.1460
USDJPY, H1: USDJPY remains traded within a descending channel while currently testing at the 60-MA line (green). MACD which has formed a death cross signal suggests the pair to extend its losses after closing below the 60-MA line.
Resistance level: 112.45, 112.70
Support level: 112.15, 111.90
AUDUSD, H4: AUDUSD was traded lower while currently testing at the strong support of 0.7090. MACD which begins to form a death cross signal suggests the pair to extend its losses after closing below the target of 0.7090.
Resistance level: 0.7130, 0.7150
Support level: 0.7090, 0.7045
NZDUSD, H1: NZDUSD was traded lower following prior retracement from the higher levels. MACD which begins to form a death cross signal suggests the pair to extend its losses, towards the support level near 0.6575.
Resistance level: 0.6595, 0.6615
Support level: 0.6575, 0.6540
USDCAD, Daily: USDCAD was traded higher following prior breakout from the downward trendline. MACD which illustrate persistent upward signal suggests the pair to extend its gains, towards the direction of 1.3155.
Resistance level: 1.3155, 1.3255
Support level: 1.3080, 1.3010
USDCHF, H1: USDCHF was traded higher following prior rebound from the upward trendline. MACD which illustrate diminishing downward momentum suggests the pair to be traded higher in short-term, towards the target of 0.9975.
Resistance level: 0.9975, 1.0000
Support level: 0.9945, 0.9915
CrudeOIL, H1: Crude oil price was traded lower following prior retrace from the 60-MA line (green). MACD which begins to form a death cross signal suggests the commodity price to extend its losses after closing below the 20-MA line (red).
Resistance level: 69.30, 70.65
Support level: 68.55, 67.35
GOLD_, H1: Gold price remains traded within a descending channel while currently testing at the 20-MA line (red). Stochastic Oscillator which begins to form a death cross signal suggests the commodity price to extend its losses after closing below the 20-MA line.
Resistance level: 1228.00, 1237.00
Support level: 1218.00, 1210.60