26 September 2019 Afternoon Session Analysis
Yen fall due to low local yield.
Japanese Yen looks as the worst-performing Group-of-10 currency in September, according to Bloomberg. Bearish pressure continues to surround the Japanese Yen due to large redemption of Japanese Government bonds from the investors. With low local yields in Japan, investors reinvested huge amount of money in asset overseas, spurring the pressure of huge sell-off in Japanese Yen. In addition, Japanese Yen fall amid to positive sign of progress in U.S.- China trade relations talk, which stoked a shift in sentiment toward riskier asset, damping demand for safe-havens. However, the currency remains particularly sensitive to news on trade and geopolitics. In fact, investors would scrutinize future economic data in order to gauge the likelihood of an interest rate cut during their Bank of Japan policy meeting. Investors would also take clues from Brexit developments ahead of the U.K.’s Oct. 31 deadline for leaving the European Union. Furthermore, some analysts still expect Japanese Yen would be fall further amid to large Japanese purchase of U.S. bonds in the second half of the fiscal year begins. On the other hand, Pound Sterling slump after UK Supreme Court ruling against PM Johnson’s suspension amid to the rise of the geopolitical risk. For now, Boris Johnson has an almighty task in trying to get a Brexit deal approved before the 19 October deadline set by lawmakers after failing to suspend Parliament. Meanwhile, investors will continually seek clue from the Brexit latest update. As of writing, USD/JPY slump 0.10% to 107.64 while GBP/USD rose 0.20% to 1.2372.
In commodities market, crude oil price rose after U.S. President Donald Trump claimed that the resolution for the China-US trade tensions would be faster than expected, helping to stave off pressure from rising oil supplies and worries about global growth. On the other hand, gold price dropped as risk sentiment improved after Trump provided the positive statement and also due to stronger greenback. As of writing, crude oil price rose 1.69% to $56.40 per barrels while gold price rose 0.35% to $1508.61 per troy ounces.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
21:30 EUR ECB President Draghi Speaks
21:45 GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – GDP (QoQ) (Q2) | 2.0% | 2.0% | – |
| 20:30 | USD – Initial Jobless Claims | 208K | 212K | – |
| 22:00 | USD – Pending Home Sales (MoM) (Aug) | -2.5% | 0.9% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 98.65. MACD which illustrate diminished upward momentum suggests the index to extend its losses toward the support level at 98.40.
Resistance level: 98.65, 99.20
Support level: 98.40, 98.00
GBPUSD, Daily: GBPUSD was traded lower while currently testing the 50 moving average line (Blue). MACD which illustrate bearish momentum suggests the pair to extend its losses toward the support level after successfully breakout below the 50 moving average line (Blue).
Resistance level: 1.2515, 1.2665
Support level: 1.2325, 1.2165
EURUSD, Daily: EURUSD was traded lower following prior breakout below the previous support level at 1.0965. MACD which illustrate bearish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 1.0855.
Resistance level: 1.0965, 1.1150
Support level: 1.0855, 1.0745
USDJPY, H1: USDJPY was traded lower while currently testing the 20 moving average line (Red). MACD which illustrate bearish momentum suggests the pair to extend its losses toward the support level after successfully breakout below the 20 moving average line (Red).
Resistance level: 107.75, 108.25
Support level: 107.15, 106.65
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.6750. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after successfully breakout below the support level at 0.6750.
Resistance level: 0.6795, 0.6835
Support level: 0.6750, 0.6695
NZDUSD, H1: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6295. MACD which illustrate bullish signal suggests the pair to extend its gains toward the resistance level at 0.6360.
Resistance level: 0.6360, 0.6425
Support level: 0.6295, 0.6255
USDCAD, Daily: USDCAD was traded flat within a sideway channel. Due to MACD lack of signal, it is suggested to wait for further confirmation before entering the market.
Resistance level: 1.3335, 1.3530
Support level: 1.3145, 1.3020
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9885. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.9945.
Resistance level: 0.9945, 1.0005
Support level: 0.9885, 0.9810
CrudeOIL, Daily: Crude oil price was traded lower following prior breakout below the previous support level at 56.80. MACD which illustrate bearish momentum and the formation of death cross suggest the commodity to extend its losses toward the support level at 55.90.
Resistance level: 56.80, 58.55
Support level: 55.90, 54.65
GOLD_, Daily: Gold price was traded lower while currently testing the support level at 1506.10. MACD which illustrate diminished bullish momentum suggest the commodity to extend its losses after successfully breakout below the support level at 1506.10.
Resistance level: 1551.85, 1595.00
Support level: 1506.10, 1485.65