9 December 2019 Afternoon Session Analysis
Dollar on pullback amid lingering concern of trade war.
The greenback which traded against a basket of six major currency pairs have fell as market remains concern about escalation in trade war despite strong U.S jobs market. Last week, dollar index soars after data surprise global market with its upbeat reading from Non-Farm Payroll and unemployment rate. However, the potential upside for the currency remains limited by worries about an escalation in the U.S.-China trade war. Investors are currently making assumption that the new tariff which take effect from Dec 15 whether it will be dropped or at least postponed, given that Washington and Beijing agreed in October to work on a trade deal. But, White House economic advisor Larry Kudlow have recently stated that the Dec. 15 deadline to impose the new tariffs remains in place, but added that President Donald Trump likes where trade talks with China are going. Due to the ongoing uncertainty, investors are now awaiting for further news and confirmation in order to determine further direction for the dollar. At the time of writing, dollar index fell 0.02% to 97.62.
In the commodities market, crude oil price tumbled 0.34% to $58.91 per barrel at the time of writing as weak export data from China adding further concern about the demand for the commodity. According to the customs data, exports from China in November fell 1.1% from a year earlier, a sharp reversal from expectations for a 1% increase in a Reuter’s poll of analysts. On the other hand, gold price rose 0.02% to $1459.55 a troy ounce as of writing following amid gains from dollar weakness.
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 |
| 21:30 | CHF – Unemployment Rate n.s.a (Nov) | 2.3% | 2.3% | – |
| 21:30 | EUR – German Trade Balance (Oct) | 19.2B | 19.0B | – |
| 21:30 | CAD – Housing Permits (MoM) (Oct) | -6.5% | 3.0% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 97.55. MACD which illustrate ongoing bullish momentum suggest the dollar to extend its gains towards the resistance level 98.20.
Resistance level: 98.20, 98.90
Support level: 97.55, 96.95
GBPUSD, H4: GBPUSD was traded higher following recent rebound from the support level 1.3090. However, MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to be traded lower in short term towards the support level 1.3090.
Resistance level: 1.3190, 1.3295
Support level: 1.3090, 1.2970
EURUSD, H4: EURUSD was traded lower following recent breakout below the previous support level 1.1080. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses towards the support level 1.0990.
Resistance level: 1.1080, 1.1170
Support level: 1.0990, 1.0925
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level 108.65. However, due to lack of clear direction from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 108.65, 109.05
Support level: 108.25, 107.90
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.6825. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses after it breaks below the support level 0.6825.
Resistance level: 0.6880, 0.6925
Support level: 0.6825, 0.6770
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level 0.6585. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to extend its losses towards the support level 0.6500.
Resistance level: 0.6585, 0.6650
Support level: 0.6500, 0.6435
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level 1.3260. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 1.3260, 1.3320
Support level: 1.3185, 1.3125
USDCHF, H4: USDCHF was traded higher while currently testing near the resistance level 0.9915. MACD which illustrate ongoing bullish momentum suggest the pair to extend its gains after it breaks above the resistance level 0.9915.
Resistance level: 0.9915, 0.9980
Support level: 0.9845, 0.9800
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level 59.40. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its retracement toward the support level at 58.55.
Resistance level: 59.40, 60.85
Support level: 58.55, 57.50
GOLD_, H4: Gold price was traded lower following recent breakout below the previous support level 1463.70. MACD which illustrate ongoing bearish momentum suggest the commodity to extend its losses towards the support level 1450.75.
Resistance level: 1463.70, 1497.00
Support level: 1450.75, 1432.40