5 August 2019 Morning Session Analysis
Greenback fumbles although NFP delivers.
US dollar extended its losses although recent jobs report shows within expectation reading for last month. According to US Bureau of Labor Statistics, Nonfarm Payrolls for the month of July came in at 164,000, well within economist forecast. On the other hand, Average Hourly Earnings tick up by 0.1% to 0.3% for last month while unemployment rate remains steady at 50-years low of 3.7%. However, greenback failed to garner any substantial bullish momentum as the Nonfarm Payrolls data for the past few months portrays diminishing hiring momentum. Likewise, the data also failed to ease market speculation for an interest rate cut next month as it is currently priced in with a 98.5% as of writing. In addition, demand for risky assets in the market remains tepid following escalating trade tension in between US and China after Washington threatened to impose another 10% tariff starting 1st September. Following the announcement, traders shifted their portfolio from risky assets into safe-havens such as Japanese yen or Swiss Franc. For the time being, investors will continue to monitor economic developments in the US as well as current trade tensions in order to attain more market signals. During Asian trading session, the dollar index ticked down 0.01% to 97.80.
In the commodities market, crude oil price rose 0.27% to $55.27 per barrel. However, gains on its price remains limited as the latest round of US tariffs upon China would likely weaken global oil demand. Such measure would also push Beijing to purchase Iranian oil as a retaliation move that may lower global crude oil prices due to escalating tensions with US. On the other hand, gold price depreciates by 0.27% to $1,436.97 a troy ounce due to diminishing risks and a shift back into risky assets in the market.
Today’s Holiday Market Close
Time Market Event
All Day CAD Civic Holiday
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16.30 | GBP – Composite PMI (Jul) | 49.7 | 49.8 | – |
| 16:30 | GBP – Services PMI (Jul) | 50.2 | 50.4 | – |
| 22:00 | USD – ISM Non-Manufacturing PMI (Jul) | 55.1 | 55.5 | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior retrace from the top level of ascending channel. MACD which illustrate diminished upward momentum suggests the index to be traded lower in short-term as technical correction.
Resistance level: 97.80, 99.00
Support level: 96.95, 96.00
GBPUSD, H1: GBPUSD remains traded within a sideways channel while currently testing at the top level. MACD which illustrate bullish signal suggest the pair to extend its gains after closing above 1.2150.
Resistance level: 1.2150, 1.2245
Support level: 1.2080, 1.1985
EURUSD, H1: EURUSD was traded lower following prior retracement from 1.1110. MACD which begins to form a death cross signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1110, 1.1155
Support level: 1.1070, 1.1010
USDJPY, Daily: USDJPY was traded lower while currently testing at the support of 106.50. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 106.50.
Resistance level: 108.80, 111.10
Support level: 106.50, 104.85
AUDUSD, Daily: AUDUSD was traded lower after closing below 0.6830. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6830, 0.6925
Support level: 0.6875, 0.6540
NZDUSD, H1: NZDUSD was traded lower while currently testing at 0.6520. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 0.6520.
Resistance level: 0.6550, 0.6590
Support level: 0.6520, 0.6480
USDCAD, H4: USDCAD was traded lower after retracing from the top level of ascending channel. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3220, 1.3255
Support level: 1.3190, 1.3140
USDCHF, H4: USDCHF was traded lower after retracing from the resistance of 0.9835. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 0.9805.
Resistance level: 0.9835, 0.9890
Support level: 0.9805, 0.9775
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from its lower levels. MACD which illustrate diminishing downward momentum suggests its price to be traded higher in short-term as technical correction.
Resistance level: 55.70, 56.40
Support level: 55.00, 53.75
GOLD_, H1: Gold price was traded higher following prior rebound from the 20-MA line (red). MACD which illustrate diminished upward momentum suggests its price to extend further up, towards the direction of 1446.00.
Resistance level: 1446.00, 1456.50
Support level: 1431.00, 1413.40