4 October 2019 Afternoon Session Analysis
Euro surged despite bleak data.
EUR/USD surge despite bleak economic data from the EU zone from yesterday. According to Markit Economics, Germany Services Purchasing Managers Index (PMI) for the month of August came in at 51.4, lower than economist forecast for a reading of 52.5. In fact, Eurozone Markit Composite Purchasing Managers Index (PMI) and Eurozone Services Purchasing Managers Index (PMI) both came in below the market expectations. These poor sentiments should signal a bad economic prospect for Europe zone amid to the Brexit issues and increase the incentive for the European Central Bank to cut rate in future in order to stimulate the economy growth. However, the demand for Euro sparked higher as the hope for soft-Brexit arises for the speculators after Boris Johnson prepared a new proposal for a Brexit deal to European Union despite EU is still unconvinced to the plan. On the other hand, Japanese Yen surged as the uncertainty in the world economy arise after bleak data in Europe Zone and U.S. was released. However, investors would continually to scrutinize the Nonfarm payroll data tonight to gauge the future direction of the safe-haven asset. As of writing, EUR/USD rose 0.12% to 1.0975 and USD/JPY slump 0.11% to 106.75.
In the commodities market, the crude oil price rose 0.71% to $52.63 per barrel despite Saudi Arabia said it has fully restored oil output after recent attacks. On the other hand, gold price appreciated by 0.27% to $1508.99 per troy ounces amid to weaker greenback.
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 |
| 20:30 | USD – Nonfarm Payrolls (Sep) | 130K | 140K | – |
| 20:30 | USD – Average Hourly Earnings (MoM) (Sep) | 0.4% | 0.3% | – |
| 20:30 | USD – Unemployment Rate (Sep) | 3.7% | 3.7% | – |
| 22:00 | CAD – Ivey PMI (Sep) | 60.6 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior closure below 98.55. MACD which illustrate bearish signal suggests the index to extend its losses toward the support level at 98.20.
Resistance level: 99.20, 99.70
Support level: 98.20, 97.70
GBPUSD, Daily: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.2325. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the next resistance level at 1.2515.
Resistance level: 1.2515, 1.2665
Support level: 1.2325, 1.2165
EURUSD, Daily: EURUSD was traded higher following prior close above 1.0965. MACD which continues to illustrate bullish signal suggests the pair to extend its gains toward the resistance level at 1.1125.
Resistance level: 1.1125, 1.1300
Support level: 1.0965, 1.0855
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 107.00. However, MACD which illustrate diminishing downward momentum suggests the pair to experience short-term technical correction.
Resistance level: 107.00, 107.80
Support level: 106.65, 106.20
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance of 0.6750. MACD which illustrate bullish signal suggests the pair to extend its gains after closing above 0.6750.
Resistance level: 0.6750, 0.6795
Support level: 0.6695, 0.6635
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6295. MACD which continues to illustrate bullish signal suggests the pair to extend its gains toward the next resistance level at 0.6360.
Resistance level: 0.6360, 0.6425
Support level: 0.6295, 0.6255
USDCAD, Daily: USDCAD was traded higher while currently testing the channel’s top level. MACD which illustrate bullish signal suggest the pair to extend its gains after successfully breakout above the channel top level at 1.3335.
Resistance level: 1.3335, 1.3530
Support level: 1.3145, 1.3020
USDCHF, H1: USDCHF was traded higher following prior rebound from the 50 moving average line (Blue). MACD which begins to form a golden cross suggests the pair to extend its gains toward the resistance level at 1.0005.
Resistance level: 1.0005, 1.0050
Support level: 0.9945, 0.9885
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 51.95. MACD which illustrate bullish signal suggests its price to be traded higher toward the resistance level at 53.25.
Resistance level: 53.25, 54.65
Support level: 51.95, 51.15
GOLD_, H1: Gold price was traded higher following prior rebound from the lower level. MACD which illustrate diminishing downward momentum suggest the commodity to extend its gains toward the resistance level at 1520.25.
Resistance level: 1520.25, 1535.25
Support level: 1504.00, 1485.65