16 December 2019 Afternoon Session Analysis
Aussie dollar rose as trade tension diminishes.
Australian dollar hovered near four-months high against the US dollar following optimistic sentiment within the market after US and China agreed upon phase one trade deal. Trade tension between Washington and Beijing cooled off after both parties reached consensus by cancelling some US tariffs upon China while the latter promises to purchase higher quantities of US agricultural products. The last-minute agreement which averted additional US tariffs upon Chinese goods totalling $160 billion refreshes the appeal of Australian dollar and other emerging market currencies while pushing US dollar and safe-haven Japanese yen downwards. As of writing, pair of
AUD/USD rose 0.08% to 0.6881. In the other region, pair of GBP/USD skyrocketed 0.40% to 1.3378 during Asian trading session. Pound sterling continues to receive bullish support after British Prime Minister Boris Johnson won the general election last week with majority of seats that enables him to end the Brexit deadlock which has linger for more than 3 years.
As for commodities, crude oil price rose 0.10% to $59.84 per barrel following diminishing trade tension between US and China which could help to prop up future demand for the commodity. On the other hand, gold price ticked down 0.05% to $1,474.82 a troy ounce due to higher demand for risky assets.
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 |
| 16:30 | EUR – German Manufacturing PMI (Dec) | 44.1 | 44.5 | |
| 17:30 | GBP – Composite PMI | 49.3 | – | – |
| 17:30 | GBP – Manufacturing PMI | 48.9 | – | – |
| 17:30 | GBP – Service PMI | 49.3 | – | – |
| 22:45 | US – Markit Composite PMI (Dec) | 52.0 | – | |
| 22:45 | US – Manufacturing PMI | 52.6 | 52.6 | – |
| 22:45 | US – Service PMI (Dec) | 51.6 | 52.0 | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower after closing below 96.80. MACD which illustrate bearish signal suggests the index to extend its losses, towards the direction of 96.15.
Resistance level: 96.80, 97.20
Support level: 96.15, 95.80
GBPUSD, Weekly: GBPUSD was traded higher while currently testing at the resistance of 1.3390. MACD which illustrate bullish signal suggests the pair to extend its gains after closing above the resistance level.
Resistance level: 1.3390, 1.3765
Support level: 1.3130, 1.2865
EURUSD, H1: EURUSD was traded higher following a rebound near the support of 1.1115. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term.
Resistance level: 1.1145, 1.1180
Support level: 1.1115, 1.1085
USDJPY, H1: USDJPY was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to be traded higher after closing above the 20-MA line (red).
Resistance level: 109.70, 110.10
Support level: 109.35, 109.00
AUDUSD, H1: AUDUSD was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to extend its gains after breaking the resistance of 0.6885.
Resistance level: 0.6885, 0.6930
Support level: 0.6865, 0.6845
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the 20-MA line (red). MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term.
Resistance level: 0.6620, 0.6660
Support level: 0.6570, 0.6540
USDCAD, H4: USDCAD was traded lower following prior retrace from the upper level of descending wedge. MACD which illustrate diminished upward momentum suggests the pair to extend its losses after closing below the support of 1.3170.
Resistance level: 1.3220, 1.3245
Support level: 1.3170, 1.3145
USDCHF, H1: USDCHF remains traded within a sideways channel formation. MACD which illustrate bullish signal suggests the pair to extend its gains in short-term.
Resistance level: 0.9865, 0.9885
Support level: 0.9835, 0.9810
CrudeOIL, Daily: Crude oil price was traded flat near the top level of ascending channel. MACD which illustrate diminished upward momentum suggests the commodity to be traded lower in short-term as technical correction.
Resistance level: 60.45, 61.65
Support level: 58.55, 56.65
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level near 1477.00. MACD which illustrate diminishing bullish momentum suggests its price to be traded lower in short-term.
Resistance level: 1477.00, 1483.60
Support level: 1464.50, 1453.00