16 May 2019 Afternoon Session Analysis
Tariff on EU goods postponed.
Dollar index which gauge its value against a basket of six major currencies was traded lower following a news regarding Donald Trump’s plan to postpone tariff on EU goods. As the deadline inch closer, Donald Trump faces an issue on his threat to impose tariff as much as 25% on imported cars and parts from EU. According to Bloomberg, the motive of Donald Trump delaying auto tariff on EU is to avoid further deteriorate of political relationship between US and its allies as blowing up negotiation with EU might be a ‘bad move’ for US, given the current trade war tension with China. As of now, Dollar index ticked down 0.04% to 97.30. On the other hand, the pair of AUD/USD tumbled 0.14% to 0.6915 amid poor data which heightened the negative momentum in Aussie dollar. According to Australian Bureau of Statistic, Unemployment Rate for the month of April came in at 5.2%, exceeding the economist forecast of 5.0%. The downbeat data has cemented that RBA lowering down the interest rate from 1.75% to 1.5% to contend the sign of economic slowdown in Australia is a perfect move.
On the other hand, crude oil price rose 0.43% to $62.35 per barrel amid heightened Mideast tensions initiated fears of supply disruptions on crude oil. Besides, bullish momentum on crude oil has also been triggered by OPEC following its adjustment on world demand for its oil will be higher than expected. Moreover, gold price ticked higher by 0.02% to $1296.50 a troy ounce amid weakened dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:15 CAD BoC Gov Poloz Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 17:00 | EUR – Trade Balance (Mar) | 17.9B | 19.9B | – |
| 20:30 | USD – Building Permits (Apr) | 1.288M | 1.290M | – |
| 20:30 | USD – Initial Jobless Claims | 228K | 220K | – |
| 20:30 | USD – Philadelphia Fed Manufacturing Index (May) | 8.5 | 10.0 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from top-levels. MACD which display diminishing bullish momentum suggest index to extend its retracement towards the support level 97.00.
Resistance level: 97.60, 98.25
Support level: 97.00, 96.35
GBPUSD, H4: GBPUSD was traded lower following prior breakout below previous support level at 1.2865. However, MACD which display diminishing bearish momentum suggest the pair to undergo short-term technical correction and rebound towards the resistance level 1.2865.
Resistance level: 1.2865, 1.2925
Support level: 1.2800, 1.2770
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1180. MACD which display diminishing bearish momentum suggest the pair to extend its rebound after successfully closing above the MA-line.
Resistance level: 1.1240, 1.1305
Support level: 1.1180, 1.1120
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance level 109.55. MACD which display diminishing bullish momentum suggest the pair to undergo short-term technical correction and retrace towards the support level 109.15.
Resistance level: 109.55, 110.10
Support level: 109.15, 108.45
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.6915. MACD which illustrate ongoing bearish momentum suggest the pair to extend its losses after successfully closing its candle below the support level.
Resistance level: 0.6970, 0.7030
Support level: 0.6915, 0.6855
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.6540. MACD which illustrate bearish bias signal suggest the pair to further its losses after successfully breaking below the support level.
Resistance level: 0.6580, 0.6635
Support level: 0.6540, 0.6510
USDCAD, H4: USDCAD remained traded in a sideway channel while currently testing the middle level of the channel at 1.3435. MACD which illustrate bearish momentum and the formation of death cross suggest the pair to extend its losses after breaking below the support level.
Resistance level: 1.3485, 1.3530
Support level: 1.3435, 1.3380
USDCHF, H4: USDCHF was traded higher while currently testing near the resistance level 1.0085. MACD which display bullish momentum suggest the pair to extend its gains after successfully breaking above the resistance level.
Resistance level: 1.0085, 1.0130
Support level: 1.0040, 0.9980
CrudeOIL, H4: Crude oil price was traded higher after rebounding from the bottom level of the channel. MACD which illustrate bullish momentum suggest the commodity to extend its gains towards the resistance level 63.15.
Resistance level: 63.15, 64.65
Support level: 61.80, 60.15
GOLD_, H4: Gold price was traded lower while currently testing the support level 1295.65. MACD which illustrate bearish momentum and the formation of death cross suggest gold to extend its losses after successfully breaking below the support level.
Resistance level: 1302.50, 1311.40
Support level: 1295.65, 1287.85