6 May 2019 Morning Session Analysis
Yen in bid after Trump’s ultimatum.
Japanese yen received higher demand on Monday after US President Donald Trump threatened to increase additional tariffs upon China, sparking higher risk aversion in the global financial market. As of writing, pair of USD/JPY depreciates by 0.43% to 110.61. Last Sunday, Trump increased his pressure towards China to reach a trade deal as soon as possible by announcing to hike tariffs upon $200 billion worth of Chinese goods this week. His announcement which were made via Twitter marked a major shift in tone from Trump, who previously cited good progress in trade talks and praised his relationship with Chinese President Xi Jinping. Due to a possible deepening in trade war between two of the world’s largest economy, investors poured into safe-haven assets such as Japanese yen and gold. On the other hand, pair of AUD/USD depreciates by 0.68% to 0.6975. Australian dollar received a large selloff due to higher trade war risks in between US and China. It is to be noted that China is Australia’s largest trade partner.
In the commodities market, crude oil price slumped 2.25% to $60.41 per barrel. Following Trump’s tariff announcement on Twitter, oil futures were sold off due to higher risk aversion and possibility of a slowdown in oil demand after tariffs were being enforced upon China by the US. Otherwise, gold price rose 0.29% to $1,282.87 a troy ounce due to higher risk aversion in the market.
Today’s Holiday Market Close
Time Market Event
All Day UK Early May Bank Holiday
Today’s Highlight Events
Time Market Event
01:45 (7th) CAD Boc Gov Poloz Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 15:55 | EUR – German Services PMI (Apr) | 55.6 | 55.6 | – |
| 16:00 | EUR – Markit Composite PMI (Apr) | 51.3 | 51.3 | – |
| 17:00 | EUR – Services PMI (Apr) | 52.5 | 52.5 | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bearish momentum suggest the index to extend its gains toward the resistance level at 97.40.
Resistance level: 97.40, 97.60
Support level: 97.05, 96.70
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.3145. MACD which illustrate diminishing bullish momentum suggest the pair to be extend its losses toward the support level at 1.3105.
Resistance level: 1.3140, 1.3185
Support level: 1.3105, 1.3065
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1180. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 1.1215.
Resistance level: 1.1215, 1.1255
Support level: 1.1180, 1.1125
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 110.85. MACD which display bearish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 110.35.
Resistance level: 110.85, 111.15
Support level: 110.35, 109.75
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the lower level. However, MACD which illustrate bearish momentum and the formation of death cross suggest the pair to undergo technical correction in short term toward the support level at 0.6950.
Resistance level: 0.6995, 0.7025
Support level: 0.6950, 0.6910
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bearish momentum suggest the pair to extend its rebound toward the resistance level at 0.6630.
Resistance level: 0.6630, 0.6670
Support level: 0.6585, 0.6545
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3440. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 1.3505.
Resistance level: 1.3505, 1.3565
Support level: 1.3440, 1.3390
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 1.0160. MACD which display bearish momentum suggest the pair to extend its losses toward the support level at 1.0125.
Resistance level: 1.0180, 1.0220
Support level: 1.0125, 1.0090
CrudeOIL, H4: Crude oil was traded lower while currently testing the support level at 60.25. MACD which illustrate bearish momentum suggest the commodity to extend its losses after successfully breakout below the support level at 60.25.
Resistance level: 61.80, 62.80
Support level: 60.25, 58.20
GOLD_, H4: Gold was traded higher following prior breakout above the previous resistance level at 1278.45. MACD which illustrate bullish momentum suggest the commodity to extend its gains toward the resistance level at 1287.65.
Resistance level: 1287.65, 1293.20
Support level: 1278.45, 1272.45