22 October 2018 Afternoon Session Analysis
Dollar tumbled amid downbeat data
Dollar plunged against a basket of six major peer currencies due to releasement of poor results from the September U.S. Existing Home Sales last Friday. The data came in at only 5.15 million units, substantially lower than forecast of 5.30 million has exert downward pressure on the US dollar while implicating that the current housing market is weak. The data also implies that overall US economic strength may be jeopardized. In addition, following the death of columnist Jamal Khashoggi, US President Donald Trump criticized on Saudi Arabia’s foreign minister Adel al-Jubeir comments as he said the killing was a mistake and blamed it on a ‘rogue operation’. As of writing, the dollar index was down 0.05% to 95.35 during early European trading session. On the other hand, the pair of EUR/USD managed to remain flat as majority of market participants are keeping their eyes on the news around Brexit and the controversial Italian budget proposal as the movement of Euro and Sterling pound become increasingly sensitive to these geopolitical factors. The pair of EUR/USD rose 0.01% to 1.1515.
In the commodities market, crude oil price was remained flat at $69.39 per barrel despite imminent US sanctions upon Iran that will start from early November. Next, gold price rose 0.12% to $1227.50 per troy ounce amid the impact of geopolitical tensions including murder of Washington post columnist, Italy’s budget and Brexit created high demand for safe haven asset.
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, H4: Dollar index was traded lower following prior breakout from the previous support level at 95.50. MACD which illustrate starting bearish momentum and formation of death cross suggest the index to extend the losses toward the support level at 95.30.
Resistance level: 95.50, 95.70
Support level: 95.30, 95.00
GBPUSD, H4: GBPUSD was traded higher while currently testing near the support level at 1.3065. MACD which illustrate starting bullish momentum and formation of golden cross suggest the pair to extend its gains toward the resistance level at 1.3125.
Resistance level: 1.3125, 1.3185
Support level: 1.3065, 1.3015
EURUSD, H4: EURUSD was traded higher following prior breakout from the previous resistance level at 1.1490. MACD which illustrate bullish momentum and formation of golden cross suggest the pair to extend its gains toward the resistance level at 1.1525.
Resistance level: 1.1525, 1.1545
Support level: 1.1490, 1.1430
USDJPY, H1: USDJPY was traded higher following prior breakout from the previous resistance level at 112.40. MACD which illustrate starting bullish momentum and formation of golden cross suggest the pair to extend its gain toward the resistance level at 112.70.
Resistance level: 112.70, 112.80
Support level: 112.40, 112.20
AUDUSD, H1: AUDUSD was traded higher following prior rebound from the support level at 0.7105. MACD which illustrate diminishing of bearish momentum suggest the pair to be traded higher in short term toward the resistance level at 0.7115.
Resistance level: 0.7115, 0.7130
Support level: 0.7105, 0.7090
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6605. MACD which illustrate bullish momentum and formation of golden cross suggest the pair to be traded higher toward the resistance level at 0.6605.
Resistance level: 0.6605, 0.6635
Support level: 0.6580, 0.6535
USDCAD, H1: USDCAD was traded lower following prior retracement from the resistance level at 1.3120. MACD which illustrate bearish momentum and formation of death cross suggest the pair to extend its losses toward the support level at 1.3085.
Resistance level: 1.3120, 1.3200
Support level: 1.3085, 1.3050
USDCHF, H4: USDCHF was traded higher while currently testing near the resistance level at 0.9975. MACD which illustrate diminishing of bullish momentum and formation of death cross suggest the pair to be traded lower in short term toward the support level at 0.9945.
Resistance level: 0.9975, 1.0050
Support level: 0.9945, 0.9905
CrudeOIL, H4: Crude oil was traded higher following prior rebound from the support level at 68.25. MACD which illustrate bullish momentum and formation of golden cross suggest the pair to be traded higher toward the resistance level at 70.75.
Resistance level: 70.75, 72.30
Support level: 68.70, 68.25
GOLD_, H4: Gold was traded lower following prior retracement from the resistance level at 1229.85. MACD which illustrate diminishing bearish momentum suggest the pair to be traded higher in short term toward the resistance level at 1229.85.
Resistance level: 1229.85, 1237.00
Support level: 1221.35, 1217.05