10 December 2019 Morning Session Analysis
Will US and China able to achieve consensus?
Greenback edged lower on Monday amid uncertainty over the ability of US and China in finalizing a partial trade deal before the deadline at the end of the week. As of writing, the dollar index fell 0.05% to 97.56 against six major currencies. Earlier, China commented that they would like to achieve a trade deal as soon as possible prior to the December 15th deadline whereby US is slated to impose tariffs upon $156 billion Chinese imports. The phase one trade deal was held back after US and China both unwilling to give into each other’s demand. Beijing requested Washington to roll back prior imposed tariffs upon China. On the other hand, Washington demanded China to purchase a specific amount of US agricultural products. For the time being, investors will continue to monitor trade negotiation in between US and China to attain more market signals. On the other hand, pair of EUR/USD rose 0.02% to 1.1064 following bullish data from yesterday. For the month of October, Germany’s Trade Balance came in at 20.6 billion, slightly higher than forecast of 19.0 billion.
As for commodities, crude oil price dipped 0.01% to $58.87 per barrel. Oil prices edged lower as market participants concerned over the ability of US and China in achieving a partial trade deal which may affect global economic growth and its demand towards the commodity. On the other hand, gold price was traded flat at $1,461.80 a troy ounce while traders wait for more signals from the US and China trade negotiation.
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 |
| 17:30 | GBP – GDP (QoQ) (Q3) | 0.3% | -0.2% | – |
| 17:30 | GBP – Manufacturing Production (MoM) (Oct) | -0.4% | 0.1% | – |
| 18:00 | EUR – German ZEW Economic Sentiment (Dec) | -2.1 | 1.1 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the lower level. MACD which illustrate bullish signal suggests the index to extend its gains after closing above 97.60.
Resistance level: 97.60, 97.80
Support level: 97.35, 97.15
GBPUSD, Weekly: GBPUSD was traded higher while currently testing at the resistance of 1.3165. MACD which illustrate bullish signal suggests the index to extend its gains after breaking the resistance level.
Resistance level: 1.3165, 1.3450
Support level: 1.2880, 1.2530
EURUSD, H4: EURUSD was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term.
Resistance level: 1.1085, 1.1115
Support level: 1.1050, 1.1010
USDJPY, H4: USDJPY was traded lower following prior retracement from the 20-MA line (red). MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 108.90, 109.35
Support level: 108.50, 107.90
AUDUSD, H1: AUDUSD was traded lower following prior closure below the support of 0.6820. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 0.6810.
Resistance level: 0.6820, 0.6840
Support level: 0.6810, 0.6800
NZDUSD, H4: NZDUSD was traded lower while currently testing at the support of 0.6540. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below the support level.
Resistance level: 0.6570, 0.6615
Support level: 0.6540, 0.6510
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level. MACD which illustrate increasing bullish momentum suggests the pair to be traded higher in short-term.
Resistance level: 1.3280, 1.3310
Support level: 1.3220, 1.3170
USDCHF, H4: USDCHF was traded lower following prior closure below 0.9890. MACD which begins to form bearish signal suggests the pair to extend its losses, towards the direction of 0.9850.
Resistance level: 0.9890, 0.9920
Support level: 0.9850, 0.9810
CrudeOIL, H4: Crude oil price was traded lower following prior retrace from its higher levels. MACD which begins to form bearish signal suggests its price to be traded lower in short-term.
Resistance level: 59.60, 60.20
Support level: 58.55, 58.00
GOLD_, H4: Gold price was traded higher following prior rebound from the lower level. MACD which illustrate diminishing downward momentum suggests its price to be traded higher in short-term.
Resistance level: 1472.00, 1483.60
Support level: 1453.00, 1442.90