28 May 2019 Afternoon Session Analysis
AUD suppressed by US-China trade war.
Australian dollar extended gains during Asian trading session while market participants await further market signals. Pair of AUD/USD tacks up 0.12% to 0.6925 as of writing. Earlier today, Australian dollar received some bidding in the FX market as Chinese iron ore prices hit a record high of CNY 774.5 per tonne. As iron ore makes up a bulk of Australia’s commodity exports, any movement in its prices would be reflected upon the Australian dollar. However, gains on the currency remains limited as political and trade tension arises in between US and China. Prior, US President Donald Trump’s statement shows lack of readiness to achieve a substantial trade deal with China, prompting higher short orders in the FX market. As China is one of Australia’s major trade partner, any developments in trade war will affect the currency as well. For the week ahead, investor’s will pay attention towards further market signal with regards to trade war as well as regional economic data to determine its near-term trend direction.
In the commodities market, crude oil price rose 0.17% to $58.98 per barrel. Oil futures begins to recoup some of its losses as supply cuts lead by OPEC and US sanction against Iran outweighs market concern over possible economic slowdown. Otherwise, gold price depreciates by 0.13% to $1,283.35 a troy ounce due to a sharp rebound in 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 |
| 13:45 | CHF – GDP (QoQ) (Q1) | 0.2% | 0.3% | – |
| 22:00 | USD – CB Consumer Confidence (May) | 129.2 | 130.1 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level 97.40. MACD which illustrate bullish bias signal suggest the dollar to extend its rebound towards the resistance level 97.70.
Resistance level: 97.70, 98.00
Support level: 97.40, 97.05
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level 1.2690. MACD, which illustrate bearish bias signal with the starting formation of death cross suggest the pair to extend its losses towards the support level 1.2615.
Resistance level: 1.2690, 1.2745
Support level: 1.2615, 1.2550
EURUSD, H4: EURUSD was traded lower while currently testing near the support level 1.1175. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.1215, 1.1245
Support level: 1.1175, 1.1145
USDJPY, H4: USDJPY remain traded in a sideway channel. However, MACD which illustrate bullish signal suggest the pair to be traded higher in short term towards the resistance level 109.75.
Resistance level: 109.75, 110.00
Support level: 109.25, 109.05
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level 0.6930. However, MACD which illustrate diminishing bullish momentum suggest the pair to experience a technical correction in short term towards the support level 0.6900.
Resistance level: 0.6930, 0.6965
Support level: 0.6900, 0.6865
NZDUSD, H4: NZDUSD was traded higher following recent breakout above the previous resistance level 0.6545. However, MACD which illustrate bearish bias signal suggest the pair to be traded lower as a short term technical correction towards the current support level 0.6545.
Resistance level: 0.6570, 0.6600
Support level: 0.6545, 0.6510
USDCAD, H4: USDCAD remained traded in a sideway channel. Due to lack of clear signal and direction from MACD, it is suggested to wait until further signal appear such as breakout above the resistance level 1.3475 or below the support level 1.3415 before entering the market.
Resistance level: 1.3475, 1.3520
Support level: 1.3415, 1.3380
USDCHF, H4: USDCHF was traded higher while currently testing near the resistance level 1.0050. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its gains after it breaks above the resistance level 1.0050.
Resistance level: 1.0050, 1.0080
Support level: 1.0005, 0.9965
CrudeOIL, H4: Crude oil price was traded in a sideway channel while currently testing the resistance level 59.10. MACD which illustrate bullish bias signal suggest the commodity to extend its gains after it breaks above the resistance level.
Resistance level: 59.10, 60.10
Support level: 58.05, 56.95
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level 1287.50. MACD which illustrate bearish momentum signal with the starting formation of death cross suggest the commodity to extend its retracement towards the support level 1279.05.
Resistance level: 1287.50, 1294.15
Support level: 1279.05, 1272.80