3 October 2019 Afternoon Session Analysis
Canadian dollar slips following USMCA uncertainty.
The Canadian dollar which traded against dollar have fell across the board as market react towards the comments from House of Representatives Speaker Nancy Pelosi. Following recent reports, Ms Pelosi have stated that argues that the United States-Mexico-Canada Agreement (USMCA) trade agreement needs to “have enforceability that will make it real for America’s families and farmers,” The comments suggest more needs to be done to secure the USMCA and could force BoC to shifting its tune. The news instantly echoed throughout the market and causing investors starting to sell-off aggressively for the Canadian dollar. Besides that, ongoing decline of crude oil price also weighed on the Canadian dollar as Canada being one of the producers of crude oil in the world. Market will remain concentrate on upcoming data and further news to determine further direction. At the time of writing, USDCAD rose 0.03% to 1.3325 while the dollar index rose 0.02%.
In the commodities market, crude oil continue to extend its losses and fell 0.09% to $52.43 per barrel as of writing as weak economic data continue to weigh on the demand for crude oil. At the same time, larger than expected numbers in its crude stockpiles also remain pressuring the commodity. Next, gold price rose 0.11% to $1500.92 a troy ounce at the time of writing following global risk along with uncertainty with trade war and USMCA continue to fuel the demand for the safe-haven commodity.
Today’s Holiday Market Close
Time Market Event
All Day CNY China – National Day
All Day EUR German – Unification Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Composite PMI (Sep) | 50.2 | – | – |
| 16:30 | GBP – Services PMI (Sep) | 50.6 | 50.3 | – |
| 20:30 | USD – Initial Jobless Claims | 213K | 215K | – |
| 22:00 | USD – ISM Non-Manufacturing PMI (Sep) | 56.4 | 55.0 | – |
| 22:00 | USD – ISM Non-Manufacturing Employment (Sep) | 53.1 | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior rebound from the support level 98.60. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher toward resistance level at 98.75.
Resistance level: 98.75, 98.90
Support level: 98.60, 98.45
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the 20 MA line (Red). However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2360, 1.2410
Support level: 1.2265, 1.2205
EURUSD, H4: EURUSD was traded higher following prior breakout above the support level at 1.0920. MACD which illustrated increasing bullish momentum suggest the pair to extend its gain toward the resistance level at 1.0965.
Resistance level: 1.0965, 1.1010
Support level: 1.0920, 1.0870
USDJPY, H4: USDJPY was traded lower following retracement from the previous support level at 107.45. MACD which illustrated bearish signal suggest the pair to extend its losses toward support level at 107.00
Resistance level: 107.45, 107.85
Support level: 107.00, 106.65
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the previous resistance level at 0.6695. MACD which illustrated increasing bullish 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 lower following prior retracement from the resistance level at 0.6275. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6275, 0.6290
Support level: 0.6255, 0.6235
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3300. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3335.
Resistance level: 1.3335, 1.3365
Support level: 1.3300, 1.3270
USDCHF, H4: USDCHF was traded higher following prior breakout above the support level at 0.9965. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9985, 1.0005
Support level: 0.9965, 0.9940
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the previous resistance level at 52.70. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gain toward the resistance level at 53.25.
Resistance level: 53.25, 53.75
Support level: 52.70, 52.25
GOLD_, H4: Gold price was traded lower following retracement from the resistance level at 1501.20. MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower toward support level at 1484.35.
Resistance level: 1501.20, 1512.70
Support level: 1484.35, 1474.20
Risk Statement:
Forex, Gold, Crude Oil, Commodities, CFD and all other margin trading investment products involve high level of risk and may not be suitable for all investors. Your previous investment success in stock, futures or any other investment achieved does not mean that all your future investment will obtain the same results. You should carefully consider your investment objectives, risk associated and seek professional advice before deciding to trade or if you have any doubts.