06 September 2019 Afternoon Session Analysis
Sterling stable, eyes on Brexit.
Pound sterling extended gains after British lawmakers approved legislation on Wednesday to extend the Brexit deadline for the third time and rejected Prime Minister Boris Johnson’s motion to hold a snap election. As market continues to see diminishing prospects for a disruptive ‘no deal’ Brexit taking place on October 31, analyst predicted Pound Sterling is expected to rally further. On the other hand, AUD/USD appreciate, amid doubts over the US-China trade optimism. According to economic data, the ongoing US-China trade tensions have been easing as potential meetings were discussed for mid-September between the U.S. and China. However, many investors are still difficult to be persuaded that the trade talks next month will advance the world economy. As of writing, AUD/USD appreciate 0.01% to 0.6812 while GBP/USD hovered at 1.2328.
In the commodities market, crude oil price rose 0.43% to $56.39 per barrel as U.S. Crude oil Inventories decreased more than expected. On the other hand, gold price depreciate 0.25% to $1515.16 a troy ounce due to a recovery in risk appetite.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
00:30 (7th) USD Fed Chair Powell Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:00 | EUR – GDP (QoQ) (Q2) | 0.4% | 0.2% | – |
| 20:30 | USD – Nonfarm Payrolls (Aug) | 164K | 160K | – |
| 20:30 | USD – Unemployment Rate (Aug) | 3.7% | 3.7% | – |
| 20:30 | CAD – Employment Change (Aug) | -24.2K | 18.9K | – |
| 22:00 | CAD – Ivey PMI (Aug) | 54.2 | 55.2 | – |
| 01:00
(07th) |
CrudeOIL – U.S. Baker Hughes Oil Rig Count
|
742 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 98.20. MACD which illustrate diminishing bearish momentum suggest the dollar to extend its gains towards the resistance level 98.65.
Resistance level: 98.65, 99.10
Support level: 98.20, 97.90
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level 1.2295. However, MACD which illustrate diminishing bullish bias signal suggest the pair to experience a technical correction in short term towards the support level 1.2295.
Resistance level: 1.2405, 1.2520
Support level: 1.2295, 1.2170
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level 1.1040. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses towards the support level 1.0980.
Resistance level: 1.1040, 1.1105
Support level: 1.0980, 1.0930
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level 106.75. However, MACD which illustrate diminishing bullish momentum suggest the pair to be traded lower as a short term technical correction towards the support level 106.75.
Resistance level: 107.75, 108.90
Support level: 106.75, 105.15
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level 0.6820. However, MACD which illustrate diminishing bullish momentum suggest the pair to experience a technical correction in short term towards the support level 0.6780.
Resistance level: 0.6820, 0.6870
Support level: 0.6780, 0.6740
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance level 0.6395. However, MACD which illustrate diminishing bullish momentum suggest the pair to be traded lower as a short term technical correction towards the support level 0.6345.
Resistance level: 0.6395, 0.6490
Support level: 0.6345, 0.6275
USDCAD, H4: USDCAD was traded lower following prior breakout below the support level 1.3225. However, MACD which illustrate bullish bias signal suggest the pair to be traded higher in short term towards the resistance level 1.3225.
Resistance level: 1.3225, 1.3280
Support level: 1.3185, 1.3120
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level 0.965. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its gains towards the resistance level 0.9905.
Resistance level: 0.9905, 0.9950
Support level: 0.9865, 0.9820
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level 56.80. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its retracement towards the support level 55.45.
Resistance level: 56.80, 58.75
Support level: 55.45, 53.05
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level 1519.00. MACD which illustrate ongoing bearish momentum suggest the commodity to extend its losses towards the support level 1488.85.
Resistance level: 1519.00, 1548.10
Support level: 1488.85, 1453.95