31 May 2019 Afternoon Session Analysis
Trump slaps more tariffs!
Japanese yen receives higher demand in the FX market following a new round of tariffs from the United States. As of writing, pair of USD/JPY slumped 0.35% to 109.22 during mid-Asian trading session. Earlier today, Trump administration announced to impose 5% tariff upon all imported goods from Mexico beginning June 10th. The tariff would be “gradually increased” until the flow of undocumented immigrants that crosses the border into United States stops. Such action has raised risk aversion among the market as imposition of tariffs would further increase recessive risks in the global economy. On the other hand, pair of EUR/USD slipped 0.02% to 1.1133. Euro was traded lower following heightened market concern over Italy’s rising debt level and prospect of Trump imposing tariffs upon automobile exports from the EU. For the time being, investors will continue to monitor the market in terms of trade tension to gain further market signals.
As for commodities, crude oil price slipped 0.73% to $55.93 per barrel. Oil futures received further bearish pressure following heightened trade tension after Trump imposes tariffs upon Mexico. On the other hand, gold price rose 0.25% to $1,291.63 a troy ounce following higher risk aversion in the market.
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 |
| 14:00 | EUR – German Retail Sales (MoM) (Apr) | -0.2% | 0.4% | – |
| 20:00 | EUR – German CPI (MoM) (May) | 1.0% | 0.3% | – |
| 20:30 | USD – Core PCE Price Index (MoM) (Apr) | 0.0% | 0.2% | – |
| 20:30 | USD – PCE Deflator (MoM) | 0.1% | – | – |
| 20:30 | USD – Personal Spending (MoM) (Apr) | 0.9 | 0.2 | – |
| 20:30 | CAD – GDP (MoM) (Mar) | -0.1% | 0.4% | – |
| 22:00 | USD – Michigan Consumer Sentiment (May) | 102.4 | 102.0 | – |
| 01:00 (1st) | CrudeOIL – U.S. Baker Hughes Oil Rig Count | 797 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded flat while currently testing the resistance level 98.00. However, MACD which illustrate bearish bias signal with the starting formation of death cross suggest the dollar to be traded lower towards the support level 97.70.
Resistance level: 98.00, 98.50
Support level: 97.70, 97.40
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level 1.2610. However, MACD which illustrate diminishing bearish momentum suggest the pair to be traded higher as a short term technical correction towards the resistance level 1.2690.
Resistance level: 1.2690, 1.2745
Support level: 1.2610, 1.2550
EURUSD, H4: EURUSD was traded flat following recent retracement from the resistance level 1.1145. However, MACD which illustrate bullish bias signal suggest the pair to be traded higher towards the resistance level 1.1145.
Resistance level: 1.1145, 1.1175
Support level: 1.1115, 1.1080
USDJPY, H4: USDJPY remain traded in a sideway channel while currently testing the support level 109.25. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses after it successfully breaks below the support level.
Resistance level: 109.75, 110.00
Support level: 109.25, 109.05
AUDUSD, H4: AUDUSD remain traded in a sideway channel following recent rebound from the support level 0.6900. MACD which illustrate bullish bias signal suggest the pair to extend its rebound towards the resistance level 0.6930.
Resistance level: 0.6930, 0.6965
Support level: 0.6900, 0.6865
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level 0.6510. MACD which illustrate bullish bias signal suggest the pair to extend its gain after it breaks above the resistance level.
Resistance level: 0.6545, 0.6570
Support level: 0.6510, 0.6475
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level 1.3535. MACD which display persistent bullish momentum suggest the pair to extend its gains after it breaks above the resistance level 1.3535.
Resistance level: 1.3535, 1.3570
Support level: 1.3490, 1.3415
USDCHF, H4: USDCHF was traded lower while currently testing the support level 1.0050. 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: 1.0080, 1.0125
Support level: 1.0050, 1.0005
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level 55.75. MACD which illustrate bearish bias signal with the formation of death cross suggest the commodity to extend its losses after it breaks below the support level 55.75.
Resistance level: 56.85, 57.85
Support level: 55.75, 54.90
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level 1287.20. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the commodity to extend its gains towards the resistance level 1294.15.
Resistance level: 1294.15, 1301.85
Support level: 1287.20, 1279.05