23 September 2019 Afternoon Session Analysis
Euro slump over poor Germany data.
The Canadian Dollar ended flat on Friday as trade tensions arises after China unexpectedly cancelled off a farm visit as part of the restart of negotiations. Such news has spurred higher volume of safe-haven purchases as trade uncertainty increases. However, according to Statistics Canada, Canada Core Retail Sales MoM came in at -0.1%, fared weaker than economic forecast of 0.2%. The bleak reading would pressure the Bank of Canada (BoC) to reduce its interest rates sooner than later. However, the expectation for cutting rates do not reduce the value for loonie as risk aversion shifted the Canadian currency from rallying upward. On the other hand, since Germany has a strong economic impact for the European Union (EU), a poor Germany data which published on last Friday had triggered the EUR/USD to extend its losses. According to Destatis, Germany Producer Price Index came in at -0.5%, well below expectation of -0.2% for the month of July. Lower than expected reading should lead the pairs to suffer a drop amid the positive prospect for the European Central bank to implement expansionary monetary policy to boost up the economy growth in Europe. As of writing, USD/CAD appreciate by 0.11% to 1.3273 while EUR/USD rose 0.07% to 1.1024.
In the commodities market, crude oil price rose 0.45% to $58.640 per barrel as Pompeo claimed that Trump would take necessary action if Tehran failed to change its behaviour. On the other hand, Gold price rose 0.04% to $1517.47 per troy ounces as pessimistic expectation toward the trade talk between U.S. and China.
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 | Nation & Data | Previous | Forecast | Actual |
| 15.30 | EUR – German Manufacturing PMI (Sep) | 43.5 | 44.0 | – |
| 21.45 | USD – Manufacturing PMI (Sep) | 50.3 | 50.3 | – |
| 21.45 | USD – Services PMI (Sep) | 50.7 | 51.5 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 98.20. MACD which illustrated diminishing bullish momentum suggests its price to be traded lower toward direction of the support level at 97.75.
Resistance level: 98.20, 98.55
Support level: 97.75, 97.50
GBPUSD, Daily: GBPUSD was traded lower following prior retracement from its resistance level at 1.2565. MACD which illustrated diminishing bullish momentum suggests its price to be traded lower toward the support level at 1.2335.
Resistance level: 1.2565, 1.2725
Support level: 1.2335, 1.2150
EURUSD, H4: EURUSD was traded higher following prior rebound from its support level at 1.1005. MACD which illustrated diminishing bearish momentum suggests the pair to extend its gains toward the resistance level at 1.1065.
Resistance level: 1.1065, 1.1100
Support level 1.1005, 1.0940
USDJPY, Daily: USDJPY was traded lower following prior retracement from the resistance level at 108.35. MACD which illustrated diminishing bullish momentum suggests its price to be traded lower toward its support level at 107.35.
Resistance level: 108.35, 109.10
Support level: 107.35, 106.45
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.6760. MACD which illustrated diminishing bearish momentum suggests the pair to extend its gain toward the resistance level at 0.6790.
Resistance level: 0.6790, 0.6820
Support level: 0.6760, 0.6735
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.6255. MACD which illustrated diminishing bearish momentum suggests the pair to extend its gains toward the resistance level at 0.6290.
Resistance level: 0.6290, 0.6325
Support level: 0.6255, 0.6230
USDCAD, H4: USDCAD was traded higher following prior rebound from its support level at 1.3240. MACD which illustrated diminishing bearish momentum suggests the pair to extend its gain toward the resistance level at 1.3295.
Resistance level: 1.3295, 1.3370.
Support level: 1.3240, 1.3195
USDCHF, Daily: USDCHF remains traded within a upward channel while currently testing at the resistance level at 0.9930. MACD which illustrated increasing bearish momentum suggests the pair to trade lower toward the support level at 0.9815.
Resistance level: 0.9930, 1.0010
Support level: 0.9815, 0.9735
CrudeOIL, H4: Crude oil price was traded within a range while currently testing at the resistance level at 59.00. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher after it successfully breakout above resistance level.
Resistance level: 59.00, 61.45
Support level: 57.00, 55.25
GOLD_, H4: Gold was traded higher following prior rebound from the support level at 1500.25. MACD which illustrated increasing bullish momentum suggest the pair to be traded higher toward the resistance level at 1526.35.
Resistance level: 1526.35, 1548.65
Support level: 1500.25, 1485.45