5 November 2019 Morning Session Analysis
Greenback surged on hopes for trade talks.
US dollar surged amid hope upon the resolution of trade war which further increased the risk appetite, which pushed U.S. stocks and Treasury yields higher. According to Reuters, U.S Commerce Secretary’s Wilbur Ross claimed that licenses for U.S. companies to sell components to China’s Huawei Technologies Co “will be forthcoming very shortly”. Such positive sentiment has reduced the trade tension between U.S. and China, insinuating higher demand for the US dollar. On the other hand, the pair of EUR/USD slump despite positive data from the Europe region was released. According to Markit, Germany Manufacturing Purchasing Managers Index (PMI) notched up from 41.7 to 42.1 for the month of October. In addition, Italy Manufacturing Purchasing Managers Index (PMI) and French Manufacturing PMI for the month of October was both fared better than expectation. Although the pair of EUR/USD surge in the early trading hours of European session following the upbeat macroeconomic data from the European area was released, Euro received bearish pressure later on a surge in the U.S Dollar. As of writing, Dollar index appreciated by 0.33% to 97.30 while EUR/USD was traded flat at 1.1125.
In the commodities market, crude oil price surged yesterday amid to positive prospect for trade talk. Diminishing trade war risks has placed higher optimism among investors in which it may possibly reduce the scenario for global economic slowdown. As of writing, crude oil price depreciated by 0.19% to $56.43 per barrel. On the other hand, gold price slumped 0.01% to $1509.21 per troy ounces amid stronger U.S Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
12:30 AUD RBA Rate Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 11:30 | AUD – RBA Interest rate Decision | 0.75% | 0.75% | – |
| 17.30 | GBP – Composite PMI (Oct) | 49.3 | – | – |
| 17.30 | GBP – Service PMI (Oct) | 49.5 | 49.7 | – |
| 23:00 | USD – ISM Non-Manufacturing PMI (Oct) | 52.6 | 53.4 | – |
| 23:00 | USD – JOLTs Job Openings (Sep) | 7.051M | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior rebound from the support level at 96.90. MACD which illustrated diminishing bearish momentum suggest the index to extend its gains toward resistance level at 97.55.
Resistance level: 97.55, 98.15
Support level: 96.90, 96.40
GBPUSD, H4: GBPUSD was traded within a range while currently near support level at 1.2855. MACD which illustrated increasing bearish momentum suggest the pair to be traded lower after it successfully breakout below the support level.
Resistance level: 1.2980, 1.3065
Support level: 1.2855, 1.2780
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1165. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1075.
Resistance level: 1.1165, 1.1215
Support level: 1.1075, 1.1025
USDJPY, Daily: USDJPY was traded higher following prior breakout above the previous resistance level at 108.40. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 109.00
Resistance level: 109.00, 109.60
Support level: 108.40, 107.85
AUDUSD, Daily: AUDUSD was traded lower following prior retracement from the resistance level at 0.6905. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.6860.
Resistance level: 0.6905, 0.6960
Support level: 0.6860, 0.6810
NZDUSD, Daily: NZDUSD was traded lower following prior retracement from the resistance level at 0.6435. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.6355.
Resistance level: 0.6435, 0.6495
Support level: 0.6355, 0.6285
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.3145. MACD. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3210, 1.3260
Support level: 1.3145, 1.3085
USDCHF, Daily: USDCHF was traded higher following prior rebound from the support level at 0.9850. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.9895.
Resistance level: 0.9895, 0.9945
Support level: 0.9850, 0.9805
CrudeOIL, Daily: Crude oil price was traded higher following prior rebound from the support level at 54.05. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 57.15.
Resistance level: 57.15, 59.35
Support level: 54.05, 52.25
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level at 1509.60. MACD which illustrated increasing bearish momentum suggest its price to extend its losses toward support level at 1502.60.
Resistance level: 1509.60, 1516.95
Support level: 1502.60, 1495.70