14 October 2019 Morning Session Analysis
Higher chances of soft Brexit by 31st Oct?
US dollar extended its losses last Friday as market participants digests the news which revolves financial market such as US trade war and Brexit. Last week, US President Donald Trump announced that they have reached a “substantial phase one deal with China” which boosted the demand for risky assets on the expense of greenback. However, it is still unclear whether US will push ahead with another round of tariffs as Trump did not make a decision on the issue. Yet, US dollar managed to limit its losses after Michigan Consumer Sentiment rose from 93.2 to 96.0 for the month of October, its highest level in 3 months. Americans shows higher optimism upon their economy which is mainly due to easing concerns with regards to trade war and lower chances of impeachment of President Trump. On the other hand, pound sterling skyrocketed last Friday after UK Prime Minister Boris Johnson announced that there will be a way forward for Brexit deal with the European Union. Likewise, sterling received further bullish support after EU27 approved to reopen the negotiation channel with UK ahead of this week’s EU summit in order to prevent hard-Brexit scenario during its deadline on 31st October. As of writing, the dollar index fell 0.02% to 97.99 while GBP/USD slipped slightly by 0.05% to 1.2639.
In the commodities market, crude oil price rose by 0.10% to $54.73 per barrel. Oil futures received higher demand after nearly 300 tankers was placed off limits as companies feared violating US sanction against Iran and Venezuela, which sent freight rates to a new high. Higher cost of freight may deter delivery and substantially pushes the demand for limited supply of oil. On the other hand, gold price slumped 0.34% to $1,483.72 a troy ounce due to higher demand for risky assets.
Today’s Holiday Market Close
Time Market Event
All Day CAD Canada – Thanksgiving Day
All Day JPY Japan – Health-Sports Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the lower level. MACD which illustrate diminishing downward momentum suggests the index to be traded higher in short-term as technical correction.
Resistance level: 98.20, 98.30
Support level: 97.95, 97.75
GBPUSD, H1: GBPUSD was traded lower following prior retracement from its higher level. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2670, 1.2750
Support level: 1.2600, 1.2515
EURUSD, H4: EURUSD was traded lower following prior retracement from the higher level. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1070, 1.1105
Support level: 1.1010, 1.0960
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance of 108.45. MACD which illustrate bullish signal suggests the pair to extend its gains after closing above 108.45.
Resistance level: 108.45, 108.75
Support level: 108.10, 107.60
AUDUSD, H4: AUDUSD was traded lower following prior retrace from 0.6800. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6800, 0.6830
Support level: 0.6745, 0.6705
NZDUSD, H4: NZDUSD was traded lower following prior retrace from 0.6340. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6340, 0.6365
Support level: 0.6310, 0.6285
USDCAD, H4: USDCAD was traded lower while currently testing at the strong support of 1.3190. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below the support level.
Resistance level: 1.3220, 1.3255
Support level: 1.3190, 1.3145
USDCHF, H4: USDCHF was traded higher following prior closure above 0.9970. MACD which illustrate increasing bullish momentum suggests the pair to extend its gains towards the direction of 1.0010.
Resistance level: 1.0010, 1.0065
Support level: 0.9970, 0.9925
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the lower level. MACD which illustrate bullish signal suggests its price to extend its gains in mid-term.
Resistance level: 55.55, 56.70
Support level: 54.45, 53.00
GOLD_, H4: Gold price was traded lower while currently testing at the support of 1484.05. MACD which illustrate bearish signals suggests its price to extend its losses after closing below the support level.
Resistance level: 1511.00, 1532.40
Support level: 1484.05, 1460.00