27 September 2019 Afternoon Session Analysis
Pound slump as political uncertainties surged.
Pound Sterling slump as the soft Brexit hopes seen earlier in the week were unravelled amid a fresh rise in UK political uncertainties. Efforts are reportedly beginning to force Prime Minister Boris Johnson to ask for a Brexit delay sooner rather than later in order to prevent a no-deal Brexit. However, this has led to a rise in fears that the uncertainty of Brexit would persist for months or even year. On the other hand, NZDUSD slump in recent weeks amid to the rumours that the Reserve Bank of New Zealand (RBNZ) was discussing to implement easing monetary policy, spurring the pressure of huge sell-off in New Zealand dollar. Further, New Zealand dollar slump after the ANZ Consumer Confidence for September dropped to a four-year low, falling by 3.6% to 113.9, which providing a weak prospect for the economic outlook. In fact, a sharp fall in Chinese industrial profits also tend to reduce the value of Chinese proxy, the NZD. However, the latest statement from RBNZ was relieving to bearish sentiment of the NZD from investors. According to RBNZ Governor Adrian Orr statement, he claimed that the Reserve Bank of New Zealand (RBNZ) was unlikely to implement expansionary monetary policy amid to stable inflation rate and GDP. In fact, positive development on the US-China trade talk might also provide a bullish support toward NZD. As of writing, GBP/USD rose 0.09% to 1.2332 and NZD/USD appreciated by 0.05% to 0.6296.
In the commodity market, crude oil prices slump amid to weak global economic growth and its effect on oil demand. On the other hand, gold price steadies amid to investors continually to scrutinize the latest news from trade-war and Brexit issues. As of writing, the crude oil price depreciated by 0.72% to $ 56.12 per barrel and gold price rose 0.07% to $1505.37 per troy ounces.
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 |
| 20:30 | USD – Core Durable Goods Orders (MoM) (Aug) | -0.4% | 0.2% | – |
| 20:30 | USD – Core PCE Price Index (MoM) (Aug) | 0.2% | 0.2% | – |
| 22:00 | USD – Michigan Consumer Sentiment (Sep) | 89.8 | 92.0 | – |
| 01:00
(28th) |
CrudeOIL – Baker Hughes Oil Rig Count | 719 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 98.80. MACD which illustrate diminishing bullish momentum suggest the dollar to extend its losses toward the support level at 98.40.
Resistance level: 98.80, 99.20
Support level: 98.40, 98.00
GBPUSD, Daily: GBPUSD was traded lower while currently testing the support level at 1.2325. MACD which display bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level at 1.2325.
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 bias momentum suggest the pair to extend its losses toward the support level at 1.0855.
Resistance level: 1.0965, 1.1150
Support level: 1.0855, 1.0740
USDJPY, H4: USDJPY was traded lower while currently testing the 20 (red) and 50 (Blue) moving average line. MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower after it successfully breakout below the both moving average lines.
Resistance level: 107.85, 108.45
Support level: 107.10, 106.65
AUDUSD, Daily: AUDUSD was traded lower while currently testing near the support level 0.6750. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level at 0.6750.
Resistance level: 0.6795, 0.6835
Support level: 0.6750, 0.6695
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.6295. MACD which illustrate bearish signal suggest the pair to extend its losses toward the support level at 0.6255.
Resistance level: 0.6295, 0.6360
Support level: 0.6255, 0.6200
USDCAD, Daily: USDCAD was traded in a sideway channel following recent rebound from the 50 moving average line (Blue). Due to lack of signal and clear direction from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 1.3335, 1.3530
Support level: 1.3145, 1.3020
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9945. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.9945.
Resistance level: 0.9945, 1.0005
Support level: 0.9885, 0.9810
CrudeOIL, H1: Crude oil was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish momentum with the starting formation of death cross suggest the commodity to extend its losses toward the support level at 55.65.
Resistance level: 56.80, 58.55
Support level: 55.65, 54.65
GOLD_Daily: Gold price was traded lower while currently testing the support level at 1506.10. MACD which illustrate diminishing 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