03 January 2019 Morning Session Analysis
Dollar drop due to stock market turmoil.
Dollar index weakened against a basket of six major currency pairs caused by stock market turmoil during early Asian trading session. According to reports, Apple Inc. announced its revenue forecast to fall for the first quarter amid trade war tensions between US and China and also the slowdown in global economic growth. Besides that, worsening China manufacturing sector had also affected Apple’s forecasted revenue and also the fall in Australian and New Zealand dollar. Worsening global market sentiment and growth caused investors to seek protection from safe haven assets such as Japanese Yen and gold. On the other hand, the slowdown in global economy growth boosted the Yen as the Japanese pair hit a 9-months low. Dollar index fell by 0.20% to 96.15 while pair of USD/JPY plunged 1.33% to 107.15 as of writing.
In the commodities market, crude oil price plummet by 1.15% to $45.67 per barrel following stock market turmoil and also slowdown in global economic growth. The fall in oil price was also due to trade war tensions and also poor China manufacturing data. Investors are worried that the demand for crude oil will fall while OPEC’s production cut might not able to balance the low crude oil prices. On the other hand, gold price rose by 0.33% to $1288.30 a troy ounce amid risky market uncertainties which boosted the demand for safe haven gold.
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 | Market & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Construction PMI (Dec) | 53.4 | 52.9 | – |
| 21:15 | USD – ADP Nonfarm Employment Change | 179K | 179K | – |
| 23:00 | USD – ISM Manufacturing PMI (Dec) | 59.3 | 57.7 | – |
| 23:00 | USD – New Home Sales (Nov) | 1K | 1K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing near the support level 96.00. MACD which display diminishing bullish momentum suggest dollar to extend its losses after successfully breaking below the support level.
Resistance level: 96.25, 96.55
Support level: 96.00, 95.70
GBPUSD, H1: GBPUSD was traded higher while currently testing near the resistance level 1.2555. MACD which display starting bullish momentum suggest the pair to extend its gains after a breakout above the resistance level.
Resistance level: 1.2555, 1.2610
Support level: 1.2490, 1.2425
EURUSD, H1: EURUSD was traded higher following prior breakout above previous resistance level at 1.1350. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains towards the resistance level 1.1395.
Resistance level: 1.1395, 1.1435
Support level: 1.1350, 1.1320
USDJPY, H4: USDJPY was traded lower while currently testing near the support level 107.00. MACD which display bearish bias signal suggest the pair to extend its losses after successfully breaking below the support level.
Resistance level: 107.70, 108.40
Support level: 107.00, 106.55
AUDUSD, H1: AUDUSD was traded lower while currently testing near the support level 0.7000. MACD which display diminished bullish momentum and the starting formation of death cross suggest the pair to extend its losses after successfully closing its candle below the support level.
Resistance level: 0.6935, 0.6970
Support level: 0.6890, 0.6840
NZDUSD, H4: NZDUSD was traded lower following prior breakout below previous support level at 0.6650. MACD which display persistent bearish momentum suggest the pair to extend its losses towards the support level 0.6600.
Resistance level: 0.6650, 0.6700
Support level: 0.6600, 0.6535
USDCAD, H4: USDCAD was traded higher while currently testing near the resistance level 1.3645. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after successfully breaking above the resistance level.
Resistance level: 1.3645, 1.3680
Support level: 1.3610, 1.3565
USDCHF, H4: USDCHF was traded lower while currently testing the support level 0.9865. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses after successfully closing its candle below the support level.
Resistance level: 0.9920, 0.9960
Support level: 0.9865, 0.9835
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level 47.00. MACD which display diminished bullish momentum suggest the commodity to extend its retracement towards the support level 45.20.
Resistance level: 47.00, 48.50
Support level: 45.20, 43.55
GOLD_, H4: Gold price was traded higher while currently testing near the resistance level 1288.10. MACD which illustrate starting bullish momentum suggest gold to extend its gains after a breakout above the resistance level.
Resistance level: 1288.10, 1295.00
Support level: 1283.00, 1278.00