1 July 2019 Morning Session Analysis
US-China resumes trade talks.
US dollar was traded higher during Asian trading session following diminishing trade war risks in between US and China. In a highly anticipated meeting in between US President Donald Trump and China President Xi Jinping, both countries have agreed to resume trade talks after Washington pledge not to impose more tariffs upon Chinese goods while negotiation continues. In return, China has agreed to purchase more US farm goods. However, Trump stated that any current levies or tariffs upon China goods will remain in place but both leaders agreed not to intensify the current conflict. Trump also softened his stance towards Huawei, stating that “there is no great national security problem with it”. As such, Huawei will now resume any business dealing with US suppliers in terms of electronic equipment. For the time being, investors would continue to monitor trade talks in between both countries as they gauge the current risks levels in the market. As of writing, the dollar index notched up 0.18% to 96.45 during early Asian trading session.
As for commodities market, crude oil price skyrocketed 2.09% to $59.24 per barrel. Oil futures received higher demand after Russia and Saudi Arabia agreed to extend its current oil cut agreement till end of the year. On the other hand, gold price slumped 0.95% to $1,396.15 a troy ounce due to diminishing risks in the market.
Today’s Holiday Market Close
Time Market Event
All Day CAD Canada Day
All Day HKD SAR Region Establishment Day
Today’s Highlight Events
Time Market Event
15:00 CNY PBOC Gov Yi Speaks
Tentative CrudeOIL OPEC Meeting
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:55 | EUR – German Manufacturing PMI (Jun) | 45.4 | 45.4 | – |
| 15:55 | EUR – German Unemployment Change (Jun) | 60K | -3K | – |
| 16:30 | GBP – Manufacturing PMI (Jun) | 49.4 | 49.2 | – |
| 22:00 | USD – ISM Manufacturing PMI (Jun) | 52.1 | 51.0 | – |
| 22:00 | USD – ISM Manufacturing Employment (Jun) | 53.7 | 52.5 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior closure above 95.80. MACD which has formed a bullish signal suggests the index to extend its gains, towards the direction of 96.35.
Resistance level: 96.35, 97.05
Support level: 95.80, 95.50
GBPUSD, H1: GBPUSD was traded lower following prior retracement from its higher levels. MACD which begins to form a bearish signal suggests the pair to be traded lower in short-term within the sideways channel.
Resistance level: 1.2745, 1.2790
Support level: 1.2670, 1.2630
EURUSD, H1: EURUSD was traded lower following prior closure below 1.1380. MACD which has formed a bearish signal suggests the pair to be traded lower, towards the direction of 1.1345.
Resistance level: 1.1380, 1.1415
Support level: 1.1345, 1.1275
USDJPY, H4: USDJPY was traded higher following prior closure above 108.25. MACD which has formed a bullish signal suggests the pair to extend its gains, towards the direction of 108.70.
Resistance level: 108.70, 109.20
Support level: 108.25, 107.70
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance of 0.7040. MACD which begins to form a bearish signal suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7040, 0.7110
Support level: 0.7005, 0.6960
NZDUSD, Daily: NZDUSD was traded higher following prior close above 0.6710. MACD which illustrate bullish signal suggests the pair to extend its gains, towards the direction of 0.6765.
Resistance level: 0.6765, 0.6840
Support level: 0.6710, 0.6655
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level near 1.3050. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3120, 1.3220
Support level: 1.3050, 1.2970
USDCHF, H1: USDCHF was traded higher while currently testing at the top level of narrowing triangle. Although MACD illustrate bullish signal, a breakout from the top level is required to attain further confirmation.
Resistance level: 0.9810, 0.9835
Support level: 0.9770, 0.9730
CrudeOIL, H4: Crude oil price was traded higher while currently testing at the resistance of 59.60. MACD which illustrate diminished downward momentum suggests the pair to extend its gains after closing above 59.60.
Resistance level: 59.60, 61.10
Support level: 58.85, 57.25
GOLD_, H4: Gold price was traded lower while currently testing at the support level of 1390.00. MACD which illustrate bearish signal suggests its price to extend its losses after closing below 1390.00.
Resistance level: 1415.00, 1448.00
Support level: 1390.00, 1374.10