9 May 2019 Afternoon Session Analysis
Safe-haven in bid as trade talk in focus.
Japanese yen extended its gains against the greenback following higher risk aversion in the market while market participants ponder upon the two-day trade talk between US and China. As of writing, pair of USD/JPY extended its losses by 0.17% to 109.92. Market participants are anxiously waiting for the conclusion of two-day trade talk in Washington later in the day to see if China negotiators can convince White House to back down on a threatened tariff hike. Prior, US President Donald Trump accused China of backtracking on their earlier commitments while threatening to raise existing tariff rate if no deal is being reached within this week. Due to rising uncertainty in the market, market participants flee towards safe-haven assets such as Japanese yen. Similarly, pair of AUD/USD slumped 0.21% to 0.6974 due to Australian primarily reliance upon China as trade partner. As China enters into the next round of trade talk, market participants sold Australian assets for safe-haven in an act to flee from possible dominos effect if US and China fails to reach consensus.
As for commodities market, crude oil price depreciates by 0.68% to $61.53 per barrel. Oil futures received tremendous bearish pressure following higher risk aversion in the market amid US-China trade talk. Otherwise, gold price ticks up 0.02% to $1,281.09 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
20.30 USD Fed Chair Powell Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 20.30 | USD – PPI | 0.6% | 0.2% | – |
| 20.30 | USD – Initial Jobless Claims | 230K | 215K | – |
| 20.30 | CAD – Trade Balance | -2.90B | -2.45B | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 97.40. MACD which illustrate bullish bias momentum suggest the index to extend its gains after successfully breakout above the resistance level at 97.40.
Resistance level: 97.40, 97.60
Support level: 97.05, 96.70
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3005. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after successfully breakout below the support level at 1.2970.
Resistance level: 1.3045, 1.3090
Support level: 1.3005, 1.2970
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1215. MACD which illustrate diminishing bullish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 1.1175.
Resistance level: 1.1215, 1.1255
Support level: 1.1175, 1.1125
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 110.05. However, MACD which display bullish signal suggest the pair to undergo technical correction in short term toward the resistance level at 110.05.
Resistance level: 110.05, 110.35
Support level: 109.75, 109.25
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.6995. MACD which illustrate bearish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 0.6960.
Resistance level: 0.6995, 0.7025
Support level: 0.6960, 0.6910
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.6585. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 0.6545.
Resistance level: 0.6585, 0.6630
Support level: 0.6545, 0.6500
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3470. MACD which illustrate bullish momentum suggest the pair to extend its gains toward the resistance level at 1.3505.
Resistance level: 1.3505, 1.3565
Support level: 1.3470, 1.3440
USDCHF, H4: USDCHF was traded higher following prior rebound from the upward trend line. MACD which display bullish momentum suggest the pair to extend its gains toward the resistance level at 1.0220.
Resistance level: 1.0220, 1.0245
Support level: 1.0180, 1.0155
CrudeOIL, H4: Crude oil was traded lower following prior retracement from the 50 moving average line (Blue). MACD which illustrate diminishing bullish momentum suggest the commodity to extend its losses toward the support level at 60.50.
Resistance level: 62.75, 64.50
Support level: 60.50, 58.25
GOLD_, H4: Gold was traded lower while currently testing 50 moving average (Blue). MACD which illustrate bearish momentum and the formation of death cross suggest the commodity to extend its losses after successfully breakout below the 50 moving average (Blue).
Resistance level: 1287.65, 1293.20
Support level: 1278.45, 1272.60