10 May 2019 Afternoon Session Analysis
Day 2 of trade talk, tariff to go ahead?
Safe-haven assets such as Japanese yen and Swiss franc dipped on Friday following diminishing risk aversion in the market. As of writing, pair of USD/JPY rose 0.11% to 109.88 while USD/CHF ticks up 0.02% to 1.0149. On yesterday, US and Chinese officials began their two-days talk in Washington in bid to avert escalating trade war risks that may derail global economic progression. While trade tensions between Washington and Beijing were seen rising since last Sunday, it was not all hostile talk with China in appeal to meet consensus and salvage a deal. However, losses on both safe-havens were limited after Bloomberg reported that US-China trade talk may extend beyond the tariff deadline which will be enforced at 12.01PM today. On the other hand, pair of GBP/USD notched up 0.05% to 1.3019 following diminishing political risk. According to sources, Conservative Party members have stepped back from altering rules to challenge UK Prime Minister Theresa May which gave a more optimistic notion for the time being.
In the commodities market, crude oil price rose 0.88% to $62.09 per barrel. Oil futures received some bidding following diminishing risk aversion in the market. Otherwise, gold price tacks up 0.06% to $1,284.71 a troy ounce due to weaker US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 16:30 | GBP – GDP (QoQ) (Q1) | 0.2% | 0.5% | – |
| 16:30 | GBP – GDP (MoM) | 0.2% | 0.0% | – |
| 16:30 | GBP – Manufacturing Production (MoM) (Mar) | 0.3% | – | – |
| 20:30 | USD – Core CPI (MoM) (Apr) | 0.1% | 0.2% | – |
| 20:30 | CAD – Employment Change (Apr) | -7.2K | 10.0K | – |
| 01:00 (11th) | CrudeOIL – US Baker Hughes Oil Rig Count | 807 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 97.10. MACD which illustrate bearish momentum suggest the index to extend its losses after successfully breakout above the support level at 97.10.
Resistance level: 97.40, 97.60
Support level: 97.10, 96.70
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3005. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the next resistance level at 1.3045.
Resistance level: 1.3045, 1.3090
Support level: 1.3005, 1.2970
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.1215. MACD which illustrate bullish momentum suggest the pair to extend its gains toward the resistance level at 1.1255.
Resistance level: 1.1255, 1.1280
Support level: 1.1215, 1.1175
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 109.75. MACD which display bullish signal suggest the pair to extend its gains toward the resistance level at 110.05.
Resistance level: 110.05, 110.35
Support level: 109.75, 109.25
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6995. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 0.7025.
Resistance level: 0.7025, 0.7055
Support level: 0.6990, 0.6960
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6585. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.6630.
Resistance level: 0.6630, 0.6670
Support level: 0.6585, 0.6545
USDCAD, H1: USDCAD was traded higher while currently testing the resistance level at 1.3470. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after successfully breakout above the resistance level at 1.3470.
Resistance level: 1.3470, 1.3505
Support level: 1.3440, 1.3415
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 1.0155. MACD which display bearish bias momentum suggest the pair to extend its losses toward the support level at 1.0125.
Resistance level: 1.0155, 1.0180
Support level: 1.0130, 1.0090
CrudeOIL, H4: Crude oil was traded higher following prior breakout above the 20 Moving Average line (Red). MACD which illustrate bullish momentum suggest the commodity to extend its gains toward the resistance level at 62.75.
Resistance level: 62.75, 64.50
Support level: 60.50, 58.25
GOLD_, H4: Gold was traded higher following prior rebound from the 50 Moving Average line (Blue). MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1287.65.
Resistance level: 1287.65, 1293.20
Support level: 1278.45, 1272.60