2 October 2019 Afternoon Session Analysis
Market sought for safety as dollar weakness reign supreme.
U.S dollar which measured against a six pair of major rival pairs continue to dominate the market with its selling pressure following the increasing possibility of further rate cut and slowing U.S economy. Following recent decade-low of U.S manufacturing data, market remain reactive towards the data and expecting further that the Fed have to accept the fact that the labor market and the consumer are weakening which could increase their rate cut possibility on the next policy meeting. Besides that, a reports from media stated that North Korea have fired a sub-based projectile have further reinforced market concerns, causing market to escape into safe-haven markets such as Yen. Investors will remain on the lookout for further data and news development to determine further sentiment for the market. At the time of writing, dollar index fell 0.03% to 98.72 while USD/JPY also slips 0.05% to 107.70.
In the commodities market, crude oil rebound 0.33% to $54.17 per barrel as of writing following a decrease in crude inventories. According to reports from API, U.S crude stockpiles have decreased sharply last week, with the reading of -5.920M. Investors are now shifting their attention towards the upcoming number from EIA later this week. Next, gold price rose 0.07% to $1477.81 a troy ounce at the time of writing following market risk appetite have fell following dollar weakness.
Today’s Holiday Market Close
Time Market Event
All Day CNY China – National Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Construction PMI (Sep) | 45.0 | 45.0 | – |
| 20:15 | USD – ADP Nonfarm Employment Change (Sep) | 195K | 140K | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 2.412M | 1.567M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior retracement from the resistance level at 98.95. However, MACD which illustrated increasing bullish momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 98.95, 99.30
Support level: 98.20, 97.50
GBPUSD, H4: GBPUSD was traded lower following retracement from the 20 MA line (Red). However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2360, 1.2430
Support level: 1.2265, 1.2210
EURUSD, H4: EURUSD was traded higher following prior breakout above the support level at 1.0920. MACD which illustrated increasing bullish momentum suggests the pair to extend its gain toward the resistance level at 1.0955.
Resistance level: 1.0955, 1.0995
Support level: 1.0920, 1.0885
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 107.60. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher toward resistance level at 108.10.
Resistance level: 108.10, 108.45
Support level: 107.60, 107.25
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.6695. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gain toward the resistance level at 0.6740.
Resistance level: 0.6740, 0.6765
Support level: 0.6695, 0.6680
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6240. MACD which illustrated diminishing bearish momentum suggest the pair to be traded extend its gain toward resistance level at 0.6265.
Resistance level: 0.6265, 0.6290
Support level: 0.6240, 0.6215
USDCAD, H4: USDCAD was traded lower following prior retracement from the previous support level at 1.3235. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3195.
Resistance level: 1.3235, 1.3255
Support level: 1.3195, 1.3175
USDCHF, H4: USDCAF was traded higher following prior breakout above the 60 MA line (green). However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9940, 0.9975
Support level: 0.9905, 0.9870
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 53.60. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gain toward the resistance level at 54.85.
Resistance level: 54.85, 56.30
Support level: 53.60, 52.45
GOLD_, H4: Gold price was traded lower following retracement from the resistance level at 1484.95. However, MACD which illustrated increasing bullish momentum suggests the commodity to be traded higher in short-run as technical correction.
Resistance level: 1484.95, 1497.45
Support level: 1469.70, 1461.10