9 January 2019 Afternoon Session Analysis
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Trade talk sparks optimism in the market.
US dollar edges lower during mid-Asian trading session following higher optimism which surrounds trade talk between United States and China. As of writing, the dollar index depreciates by 0.11% to 95.32 against six major peers. Increasing positive sentiment and demand for riskier assets has helped to lift the Australian dollar after US government officials announced that trade talks between Washington and Beijing will continue for an unscheduled third day this Wednesday. Following the news, pair of AUD/USD rose 0.32% to 0.7161. Australian dollar is often being seen as a proxy for China’s growth as Beijing is the largest importer of Australia’s commodities and goods. In addition, the greenback received further setbacks following dovish statement from Federal Reserve Chair Jerome Powell which noted some downside risks on US economic growth and progression. On the other hand, pair of GBP/USD rose 0.18% to 1.2740. Economist is expecting pound sterling to remain volatile over the next few weeks as UK attempts to resolve Brexit conundrum.
As for commodities market, crude oil price skyrocketed 1.43% to $50.39 per barrel. The commodity received stronger bullish support amid higher optimism for a trade war resolution between US and China. Otherwise, gold price was traded flat around $1,284.24 a troy ounce while market participants monitor the outcome of trade talks.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:00 CAD BoC Monetary Policy Report
23:30 GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 18:00 | EUR – Unemployment Rate (Nov) | 8.1% | 8.1% | – |
| 23:00 | CAD – BoC Interest Rate Decision | 1.75% | 1.75% | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index remains traded within a narrowing triangle while currently testing at the bottom level. Due to the lack of signal from MACD and price action, it is suggested to wait for further signal before entering the market.
Resistance level: 95.50, 95.80
Support level: 95.00, 94.60
GBPUSD, H4: GBPUSD was traded flat while currently testing near the 20-MA line (red). MACD which begins to form a death cross signal suggests the pair to extend its losses after closing below the 20-MA line.
Resistance level: 1.2770, 1.2830
Support level: 1.2700, 1.2630
EURUSD, H4: EURUSD was traded flat following prior rebound near the support level at 1.1450. MACD which illustrate diminishing upward momentum suggests the pair to extend its losses after successfully breaking the target at 1.1450.
Resistance level: 1.1480, 1.1520
Support level: 1.1450, 1.1410
USDJPY, H4: USDJPY was traded higher while currently testing near the downward trendline. MACD which continues to illustrate bullish signal suggests the pair to extend its uptrend after successfully breaking the downward trendline.
Resistance level: 109.60, 110.20
Support level: 108.40, 106.75
AUDUSD, H1: AUDUSD was traded higher following prior closure above 0.7145. However, MACD which begins to form a bearish divergence signal suggests the pair to be traded lower in short-term after a successful close below 0.7145.
Resistance level: 0.7255, 0.7330
Support level: 0.7145, 0.7070
NZDUSD, H4: NZDUSD was traded higher while currently testing at the downward trendline. MACD which begins to form a golden cross signal suggests the pair to advance further upwards after breaking the downward trendline.
Resistance level: 0.6780, 0.6840
Support level: 0.6710, 0.6645
USDCAD, Daily: USDCAD was traded lower following prior retracement from the top level at 1.3665. MACD which illustrate persistent bearish signal suggests the pair to advance further down after closing below 1.3220.
Resistance level: 1.3270, 1.3325
Support level: 1.3220, 1.3120
USDCHF, H1: USDCHF remains traded within a sideways channel following prior retracement from the top level. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9815, 0.9840
Support level: 0.9790, 0.9770
CrudeOIL, H4: Crude oil price was traded higher while currently testing at the resistance level of 50.55. MACD which has formed a golden cross signal suggests the commodity price to advance further upwards after a successful close above 50.55.
Resistance level: 50.55, 52.90
Support level: 48.35, 44.60
GOLD_, H4: Gold price was traded lower following prior retracement from the upper levels. MACD which illustrate bearish signal and momentum suggests its prices to experience technical correction and to be traded lower in short-term.
Resistance level: 1284.35, 1303.00
Support level: 1263.20, 1254.15