8 October 2019 Morning Session Analysis
Could US and China ends trade war?
US dollar appreciated against other major currencies on Monday while investors scrutinize the outcome of US-China trade talk. As of writing, the dollar index rose 0.17% to 98.62 during Asian trading session. Overall, investors held off from initiating larger sum of trades since yesterday as high-level trade talks begins in Washington. A few topics that were outlined for discussion includes forced technology transfers, intellectual property rights and non-tariff barriers. However, gains on the US dollar were limited as speculation arises over Beijing’s commitment towards Washington requests. Some analysts postulate that with current risk of impeachment upon President Donald Trump, China may deter from making any long-term arrangements with the US for the short-term. On the other hand, pair of EUR/USD ticked down 0.02% to 1.0971. Euro came under pressure after German Factory Orders slumped by -0.6%, missing economists’ forecast of -0.3%. The data spurred speculation upon European Central Bank to continuously loosen their monetary policy in order to support EU zone economy.
As for commodities, crude oil price rose 0.17% to $52.89 per barrel. Oil price managed to rebound from its lower levels after US announced their decision to stop protecting anti-regime Kurdish rebels in Syria. This could spark higher geopolitical risk and clashes in the Middle East which may bring chances to a possible halt of oil production. On the contrary, gold price slumped 0.06% to $1,492.25 a troy ounce due to recovery in market sentiment.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
01:50 (9th) USD Fed Chair Powell Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – PPI (MoM) (Sep) | 0.1% | 0.1% | – |
| 04:30
(9th) |
CrudeOIL – API Weekly Crude Oil Stock | -5.290M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing at the resistance of 98.65. MACD which illustrate bullish signal suggests the index to extend its gains after breaking the resistance near 98.65.
Resistance level: 98.65, 99.00
Support level: 98.40, 98.30
GBPUSD, H4: GBPUSD was traded lower while currently testing at the support of 1.2275. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 1.2275.
Resistance level: 1.2325, 1.2400
Support level: 1.2275, 1.2170
EURUSD, H4: EURUSD was traded lower while currently testing at the support of 1.0965. MACD which begins to form a bearish signal suggests the pair to extend its losses after closing below 1.0965.
Resistance level: 1.1010, 1.1070
Support level: 1.0965, 1.0930
USDJPY, H4: USDJPY was traded higher following prior breakout at 107.05. MACD which illustrate bullish signal suggests the pair to advance further up, towards the direction of 107.40.
Resistance level: 107.40, 108.10
Support level: 107.05, 106.55
AUDUSD, H4: AUDUSD was traded lower following prior close below 0.6745. MACD which illustrate bearish signal suggests the pair to advance further down, towards the direction of 0.6705.
Resistance level: 0.6745, 0.6800
Support level: 0.6705, 0.6670
NZDUSD, H4: NZDUSD was traded higher following prior rebound near the 60-MA line (green). MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6310, 0.6360
Support level: 0.6250, 0.6215
USDCAD, H4: USDCAD was traded lower following prior close below 1.3315. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3315, 1.3340
Support level: 1.3280, 1.3255
USDCHF, H4: USDCHF was traded higher following prior rebound from the support of 0.9925. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9970, 1.0010
Support level: 0.9925, 0.9865
CrudeOIL, H1: Crude oil price was traded higher while currently testing near the resistance of 53.00. MACD which illustrate diminishing downward momentum suggests its price to be traded higher after closing above 53.00.
Resistance level: 53.00, 54.45
Support level: 51.60, 50.55
GOLD_, H4: Gold price was traded lower following prior retracement from the higher levels. MACD which illustrate bearish signal suggests its price to be traded lower, towards the direction of 1484.05.
Resistance level: 1511.00, 1532.40
Support level: 1484.05, 1440.00