6 March 2019 Afternoon Session Analysis
Dollar further gains in market, Aussie dollar falls.
Dollar index measuring against a basket of six major currency pairs further its bullish momentum while holding its ground as market’s safe-haven asset amid global growth concerns. According to Chinese Premier Li Keqiang, China has reduced its growth target to 6% and 6.5% as compared to last year forecasted of 6.6% growth for 2019. The news worsened market sentiment as fear of global growth slowdown spiraled, causing investors to flee into safe-haven dollar. Moreover, US strong housing and services activity further boosted the dollar while investors are still waiting for the outcome of the US-Sino trade deal. On the other hand, the Aussie dollar was suffering losses to a 2-month low following prior release of Australia’s GDP which marked a slowdown in growth by 0.2% compared to economists’ forecast of 0.5% for its fourth quarter. Overall, the pair was recording losses for the past week amid concerns over trade war uncertainties. Dollar index was up by 0.06% to 96.80 while pair of AUD/USD was down by 0.63% to 0.7035 as of writing.
For the commodities market, crude oil price fell by 0.23% to $56.20 per barrel amid growing inventory level in the US. According to American Petroleum Institute (API), US inventory level increased to 7.290M, indicating lower demand for oil prices. Along with trade war uncertainties, oil sentiment dragged its prices lower while investors focus on the Crude Oil Inventories data later today. On the other hand, gold price ticked down by 0.01% to $1,287.50 a troy ounce due to strong dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:00 CAD BoC Rate Statement
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 21:15 | USD – ADP Nonfarm Employment Change (Feb) | 213K | 189K | – |
| 21:30 | USD – Trade Balance (Dec) | -49.30B | -57.90B | – |
| 23:00 | CAD – BoC Interest Rate Decision | 1.75% | 1.75% | – |
| 23:00 | CAD – Ivey PMI (Feb) | 54.7 | 55.1 | – |
| 23:30 | CrudeOIL – EIA Crude Oil Inventories | -8.647M | 1.203M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing near the resistance level of 96.90. However, MACD which illustrate diminishing bullish momentum suggest index to undergo short-term technical correction and retrace towards the support level 96.40.
Resistance level: 96.90, 97.15
Support level: 96.40, 95.55
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.3205. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a short term technical correction back towards the resistance level 1.3205.
Resistance level: 1.3205, 1.3285
Support level: 1.3095, 1.2975
EURUSD, H4: EURUSD was traded lower while currently testing the support level 1.1300. However, MACD which display diminishing bearish momentum suggest the pair to undergo short-term technical correction and rebound towards the resistance level at 1.1355.
Resistance level: 1.1355, 1.1395
Support level: 1.1300, 1.1260
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level 112.10. MACD which illustrate bearish momentum suggest the pair to extend its retracement towards the support level 111.10.
Resistance level: 112.10, 112.70
Support level: 111.10, 110.35
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level 0.7055. MACD which display bearish bias signal suggest the pair to extend its losses towards the support level 0.7005.
Resistance level: 0.7055, 0.7085
Support level: 0.7005, 0.6950
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.6760. MACD which illustrate bearish bias signal suggest the pair to extend its losses after successfully breaking below the support level.
Resistance level: 0.6800, 0.6845
Support level: 0.6765, 0.6725
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level 1.3375. However, MACD which display diminishing bullish momentum suggest the pair to undergo short-term technical correction towards the support level 1.3310.
Resistance level: 1.3375, 1.3440
Support level: 1.3310, 1.3260
USDCHF, H4: USDCHF was traded higher following recent breakout above the previous resistance level 1.0025. However, MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement towards the support level 1.0025.
Resistance level: 1.0085, 1.0115
Support level: 1.0025, 0.9975
CrudeOIL, H4: Crude oil price was traded lower while currently testing the upwards trend line. MACD which illustrate bearish momentum suggest the commodity to extend its losses after breaking below the upward trend line and the support level at 55.60.
Resistance level: 57.50, 59.20
Support level: 55.60, 54.30
GOLD_, H4: Gold price was traded lower while currently testing near the support level 1285.65. However, MACD which illustrate starting bullish momentum with the formation of golden cross suggest gold to undergo short-term technical correction and rebound towards the resistance level 1295.15.
Resistance level: 1295.15, 1303.50
Support level: 1285.65, 1278.90