2 October 2019 Morning Session Analysis
Greenback stumbled after ISM data disappoints.
US dollar slumped sharply on yesterday following the release of manufacturing data from the region. According to Institute for Supply Management (ISM), its Manufacturing PMI for the month of September enters deeper into the contraction region with a reading of 47.8, missing economists’ forecast for an increase to 50.4. The reading for the month of September marks second consecutive month of contraction while achieving its lowest level since June 2009. The report fanned further recessive fears in the market as global trade took a significant hit due to lingering US-China trade war which is yet to be resolved. For the time being, investors will continue to scrutinize future economic data from the US in order to attain more market signals. On the other hand, pound sterling extended its losses while Brexit deadline inches nearer. Recently leaked report shows that UK government plans to place custom checks between the borders of Northern Ireland and the Irish Republic, both in which EU and Ireland have rejected previously. As of writing, the dollar index was down 0.21% to 98.75 while pair of GBP/USD depreciates by 0.10% to 1.2289.
As for commodities market, crude oil price rose 0.11% to $54.05 per barrel. Oil futures received some bullish support after API reported a draw in last week’s oil inventories by -5.920 million barrels. Otherwise, gold price ticks up 0.01% to $1,478.72 a troy ounce due to weaker greenback.
Today’s Holiday Market Close
Time Market Event
All Day CNY China – National Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Construction PMI (Sep) | 45.0 | 45.0 | – |
| 20:15 | USD – ADP Nonfarm Employment Change (Sep) | 195K | 140K | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 2.412M | 1.567M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing at 98.65. MACD which illustrate bearish signal suggests the index to extend its losses after closing below the support of 98.65.
Resistance level: 99.00, 99.30
Support level: 98.65, 98.30
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the higher level. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2325, 1.2400
Support level: 1.2260, 1.2170
EURUSD, Daily: EURUSD was traded higher while currently testing at the resistance of 1.0930. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term after breaking the target of 1.0930.
Resistance level: 1.0930, 1.1010
Support level: 1.0870, 1.0800
USDJPY, H4: USDJPY was traded lower while currently testing at the support of 107.60. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 107.60.
Resistance level: 108.10, 108.45
Support level: 107.40, 107.05
AUDUSD, H4: AUDUSD was traded higher while currently testing at the resistance near 0.6705. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term after breaking 0.6705.
Resistance level: 0.6705, 0.6745
Support level: 0.6670, 0.6600
NZDUSD, Weekly: NZDUSD was traded lower after closing below 0.6300. MACD which illustrate bearish signal suggests the pair to extend its losses in mid-term, towards the direction of 0.6035.
Resistance level: 0.6300, 0.6435
Support level: 0.6030, 0.5790
USDCAD, H4: USDCAD was traded lower while currently testing at the support of 1.3220. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 1.3220.
Resistance level: 1.3255, 1.3280
Support level: 1.3220, 1.3190
USDCHF, H4: USDCHF was traded lower while currently testing at the support of 0.9925. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 0.9925.
Resistance level: 0.9970, 1.0010
Support level: 0.9925, 0.9865
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the lower level. MACD which illustrate bullish signal suggests its price to be traded higher in short-term as technical correction.
Resistance level: 54.45, 55.55
Support level: 53.00, 51.60
GOLD_, Daily: Gold price remains traded within a downward wedge formation. Stochastic Oscillator which illustrate rebound signal suggests its price to be traded higher in short-term after a successful rebound from the lower levels.
Resistance level: 1484.05, 1511.00
Support level: 1460.00, 1442.85