7 October 2019 Afternoon Session Analysis
Yen surge as risk-off sentiment.
Japanese Yen gained as risk increase on caution about the tension for U.S. and China would arise during their trade talk, which stoked a shift in sentiment toward safe-haven asset. Chinese officials are signalling that they are increasingly reluctant to agree to a broad trade deal pursued by U.S. President Donald Trump, said Bloomberg. In addition, the bleak data in U.S. last week raised doubts on the assumption on the Fed would cut rates to boost the economy growth in the U.S. However, such worries eased slightly after U.S. September non-farm payrolls data on last Friday came in fairly strong and the jobless rate fell to near a 50-year low. Yet, sentiment about the dollar is complicated by the uncertain U.S. political outlook, as Trump faces an impeachment inquiry in the U.S. House of Representatives, which further increase geopolitics risk in U.S. and sparked the demand for Japanese Yen. On the other hand, AUD/USD slump as bleak data released on last Friday. According to Australian Bureau of Statistics, the Australia Retail Sales came in at 0.4% for the month of September, lower than the economy expectation of 0.5%. Such poor data would signal a negative prospect for the economy performance in Australia, which further provide a bearish support to the AUD/USD. As of writing, USD/JPY slump 0.12% to 106.79 and AUD/USD depreciated by 0.22% to 0.6751.
In the commodities market, crude oil price slump 0.28% to $52.64 per barrel amid to fear on global economic slowdown. However, investors would scrutinize the progress in the trade talks within this week on the hope of ending U.S.- China trade war. On the other hand, gold price rose 0.16% to 1507.07 per troy ounces as weaker greenback.
Today’s Holiday Market Close
Time Market Event
All Day CNY China – National Day
Today’s Highlight Events
Time Market Event
01:00 USD Fed Chair Powell Speaks
(8th October)
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 98.35. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gain toward resistance level at 98.60.
Resistance level: 98.60, 98.75
Support level: 98.35, 98.15
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.2340. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.2290.
Resistance level: 1.2340, 1.2375
Support level: 1.2290, 1.2245
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.0985. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.0965.
Resistance level: 1.0985, 1.1005
Support level: 1.0965, 1.0940
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 106.70. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 106.90.
Resistance level: 106.90, 107.15
Support level: 106.70,106.50.
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.6765. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.6740.
Resistance level: 0.6765, 0.6795
Support level: 0.6740, 0.6715
NZDUSD, H4: NZDUSD was traded lower while currently testing at the previous support level at 0.6315. MACD which illustrated diminishing bullish momentum suggest the pair to extend its retracement toward support level at 0.6290.
Resistance level: 0.6315, 0.6315
Support level: 0.6290, 0.6275
USDCAD, H4: USDCAD was traded higher following prior rebound from support level at 1.3305. MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-run as technical correction.
Resistance level: 1.3330, 1.3350
Support level: 1.3305, 1.3275
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9935. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gain toward resistance level at 0.9965.
Resistance level: 0.9965, 0.9985
Support level: 0.9935, 0.9920
CrudeOIL, H1: Crude oil price was traded flat near the resistance level at 52.85. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher after it successfully breakout above the resistance level.
Resistance level: 52.85, 53.25
Support level: 52.25, 51.65
GOLD_, H4: Gold price was traded lower following prior retracement from resistance level at 1509.45. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward the support level at 1497.75.
Resistance level: 1509.45, 1521.85
Support level: 1497.75, 1490.10