3 December 2018 Afternoon Session Analysis
Greenback tumbled while investor await for PMI.
Dollar index which measured against six major currencies plunged after hitting 97.20 level as investor shy away from safe heaven asset. At the same time, the demand for riskier asset rises after China and United States agreed to cease fire in their trade war which lasts for 90 days. During G20 Argentina Summit, Donald Trump revoked what he announced on last week and promised with Chinese premier that he would not increase the tariffs on $200 billion of China imported goods to 25 percent. Besides, investor are also keeping their eyes on the ISM Manufacturing PMI data which will be announced on later today. Economist forecast the data would come in at 57.5 while a higher than expected reading will exert bullish momentum toward US Dollar. As of writing, Dollar index notched down 0.30% to 96.85. On the other hand, AUD/USD up 0.75% to 0.7458 during Asian trading session amid upbeat China’s Caixin PMI data announced this morning. According to National Bureau of Statistics (NBS), China PMI data came in at 50.2 slightly higher than economist forecast of 50.0, thus it generated positive momentum toward Australian dollar. Australian dollar is highly sensitive towards China’s economic data as the latter is Australia’s largest trade partner.
In the commodities market, crude oil notched up 5.89% to $53.65 after an announcement from Canada that Alberta would force oil producer to reduce the oil production to 325k barrel per day. Next, gold price notched up 0.28% to $1225.50 amid dollar’s weakness.
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 |
| 16:55 | EUR – German Manufacturing PMI (Nov) | 51.6 | 51.6 | – |
| 17:30 | GBP – Manufacturing PMI (Nov) | 51.1 | 51.6 | – |
| 23:00 | USD – ISM Manufacturing PMI (Nov) | 57.7 | 57.5 | – |
| 23:00 | USD – ISM Manufacturing Employment (Nov) | 56.8 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar Index was traded lower following prior retracement from the resistance level at 96.90. MACD which illustrate diminishing bullish momentum suggest the index to extend its losses toward the support level at 96.65.
Resistance level: 96.90, 97.05
Support level: 96.65, 96.25
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.2725. MACD which illustrate diminishing bullish momentum and the formation of golden cross suggest the pair to extend its gain toward the resistance level at 1.2785.
Resistance level: 1.2785, 1.2835
Support level: 1.2725, 1.2670
EURUSD, H4: EURUSD was traded higher while currently testing near the resistance level at 1.1365. MACD which illustrate diminishing bearish momentum and the formation of golden cross suggest the pair to extend its gain after successfully breakout above the resistance level at 1.1365.
Resistance level: 1.1365, 1.1395
Support level: 1.1330, 1.1270
USDJPY, H4: USDJPY was traded lower in the sideway channel following prior retracement from the resistance level at 113.75. However, MACD which illustrate diminishing bearish momentum suggest the pair to be traded higher in short term toward the resistance level at 113.75.
Resistance level: 113.75, 114.00
Support level: 113.20, 112.45
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7360. MACD which display bullish bias momentum suggest the pair to extend its gain toward the resistance level at 0.7380.
Resistance level: 0.7380, 0.7405
Support level: 0.7360, 0.7325
NZDUSD, H1: NZDUSD was traded higher following prior rebound from the support level at 0.6885. However, MACD which illustrate diminishing bullish momentum suggest the pair to be traded lower in short term toward the support level at 0.6885.
Resistance level: 0.6920, 0.6955
Support level: 0.6885, 0.6835
USDCAD, H1: USDCAD was traded lower following prior breakout from the previous support level at 1.3225. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 1.3190.
Resistance level: 1.3225, 1.3250
Support level: 1.3190, 1.3140
USDCHF, H4: USDCHF was traded lower in the sideway channel following prior retracement from the resistance level at 1.0005. MACD which illustrate bullish momentum suggest the pair to extend its losses toward the support level at 0.9955.
Resistance level: 1.0005, 1.0045
Support level: 0.9955, 0.9920
CrudeOIL, H4: Crude oil was traded higher following prior breakout above the previous resistance level at 53.20. MACD which illustrate bullish momentum suggest the commodity to extend its gain toward the resistance level at 55.15.
Resistance level: 55.15, 57.65
Support level: 53.20, 50.10
GOLD_, H4: Gold was traded higher following prior breakout above the previous resistance level at 1223.30. MACD which illustrate bullish bias momentum suggest the pair to extend its gain toward the support level at 1228.50.
Resistance level: 1228.50, 1235.65
Support level: 1223.30, 1218.60