18 October 2018 Afternoon Session Analysis
Dollar hiked after hawkish FED minutes.
Dollar edged up against six major peers on Thursday after minutes showed Federal Reserve policy maker is likely to continue increasing interest rates after this year. According to the minutes from the meeting, every Fed policymaker backed on raising interest rate last month and majority agreed the interest rate to rise further. Federal Reserve emphasized that it would be the best way to preserve a steady economy although that may not satisfy President Donald Trump, who criticized central bank’s actions few days ago. Nonetheless, FED Minutes still generated positive sentiment toward the market participants, thus Dollar index rose 0.10% to 95.35 as of writing. On the other hand, the pair of GBPUSD tumbled 0.12% to 1.3095 amid soft CPI data on September where dropped to 2.4% while the market forecasted CPI was 2.6%. Besides, problem of Irish border backstop that threaten the Brexit deal also exerted bearish momentum against Sterling Pound.
In the commodities market, crude oil price fell 0.31% to 69.76 per barrel amid the U.S Crude Oil Inventories level, 6.490 million barrels is higher than forecasted level of 1.600 million barrels. Next, gold was traded up 0.12% to 1223.55 as of writing amid the FED Minutes spurred US Dollar, thus demand for safe haven assets fell.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative EUR EU Leaders Summit
Today’s Highlight Economy Data
| Time | Market & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Retail Sales (MoM) (Sep) | 0.3% | 0.4% | – |
| 20:30 | USD – Philadelphia Fed Manufacturing Index (Oct) | 22.9 | 19.7 | – |
| 20:30 | USD – Philly Fed Employment (Oct) | 17.6 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar Index was traded higher following prior breakout from the previous resistance level at 95.00. MACD which illustrate bullish momentum suggest the index to extend its gain toward the resistance level at 95.50.
Resistance level: 95.50, 95.75
Support level: 95.00, 94.60
GBPUSD, H4: GBPUSD was traded lower following prior breakout from the previous support level at 1.3125. MACD which illustrate bearish momentum and formation of death cross suggest the pair to extend its losses toward the support level at 1.3065.
Resistance level: 1.3125, 1.3185
Support level: 1.3065, 1.3030
EURUSD, H4: EURUSD was traded lower following prior breakout from the previous support level at 1.1525. MACD which illustrate bearish momentum suggest the pair to be extend its losses toward the support level at 1.1470.
Resistance level: 1.1525, 1.1605
Support level: 1.1470, 1.1430
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 112.70. MACD which illustrate starting bearish momentum and formation of death cross suggest the pair to be traded lower toward its support level at 112.40.
Resistance level: 112.70, 113.00
Support level: 112.40, 112.05
AUDUSD, H1: AUDUSD was traded higher while currently testing near the resistance level at 0.7130. MACD which illustrate bullish momentum and formation of golden cross suggest the pair to be traded higher in short term after breaking the resistance level at 0.7130.
Resistance level: 0.7130, 0.7150
Support level: 0.7115, 0.7105
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6590. MACD which illustrate bearish momentum and formation of death cross suggest the pair to be traded lower toward its support level at 0.6530.
Resistance level: 0.6590, 0.6635
Support level: 0.6530, 0.6495
USDCAD, H4: USDCAD was traded higher following prior breakout from the previous resistance level at 1.3010. MACD which illustrate bullish momentum and formation of golden cross suggest the pair to extend its gains toward the resistance level at 1.3050.
Resistance level: 1.3050, 1.3120
Support level: 1.3010, 1.2965
USDCHF, H1: USDCHF was traded higher following prior breakout from the previous resistance level at 0.9945. MACD which illustrate bearish 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, 0.9995
Support level: 0.9945, 0.9925
CrudeOIL, H1: Crude oil was traded lower while currently testing near the support level at 69.60. MACD which illustrate starting bullish momentum and formation of golden cross suggest the pair to be traded higher in short term toward the resistance level at 70.65.
Resistance level: 70.65, 72.30
Support level: 69.60, 68.25
GOLD_, H4: Gold was traded lower while currently testing near the support level at 1221.55. MACD which illustrate bearish momentum suggest the pair to be traded lower in short term after breaking the support level at 1221.55.
Resistance level: 1229.85, 1237.70
Support level: 1221.55, 1217.05