06 November 2019 Morning Session Analysis
Dollar gains on positive trade headlines.
The U.S dollar have rose against a basket of six major currency pairs during early Asian session following upbeat trade news have helped lifted the greenback. According to recent reports, China Premier Xi Jinping have stressed on its country commitments to the global trade and stated that China would “open its doors only wider” to the world. At the same time, China is pushing U.S President Donald Trump to remove more tariffs which is imposed in September in order to sign the “phase one” deal later this month. Markets are expecting that the U.S may postpone the remaining tariff, thus providing a boost for the sentiment in greenback. On the other hand, pound sterling have rebound from its low following upbeat data. According to Markit Economics, activity in U.K service sector have improved to 50, higher than market expectation of 49.7 which helped the pound to attract some bid in the market. Besides that, the pair was also supported by incoming opinion polls which indicating a majority for the UK Prime Minister Boris Johnson’s Conservative Party at the upcoming election in December. As of writing, the dollar index climbs 0.42% to 97.80 while GBP/USD also rose 0.07% to 1.2883.
In the commodities market, crude oil price rose 0.10% to $57.05 per barrel as of writing as investors remain optimistic on U.S. and China trade progress. China is reviewing locations in the U.S. where President Xi Jinping would be willing to meet his counterpart Donald Trump to sign the first phase of a trade deal, according to people familiar with the plans. As both countries are the largest oil consumer in the world, the positive development have help ease investor’s concern and also boosted the appeal of crude oil. On the other hand, gold price plummets 0.16% to $1484.70 at the time of writing amid strong dollar which supported by trade optimism.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative GBP Autumn Budget
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 23.00 | CAD – Ivey PMI (Oct) | 49.3 | 48.7 | – |
| 23.30 | CrudeOIL – Crude Oil Inventories | 5.702M | 1.515M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level 97.70. MACD which illustrate ongoing bullish momentum signal suggest the dollar to extend its gains after it breaks above the resistance level.
Resistance level: 97.70, 98.35
Support level: 96.85, 96.05
GBPUSD, H4: GBPUSD remain traded in a sideway channel. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher in short term towards the resistance level 1.3005.
Resistance level: 1.3005, 1.3180
Support level: 1.2785, 1.2685
EURUSD, H4: EURUSD was traded lower while currently testing the support level 1.1075. MACD which display ongoing bearish momentum suggest the pair to extend its losses after it breaks below the support level 1.1075.
Resistance level: 1.1170, 1.1225
Support level: 1.1075, 1.1020
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance level 109.30. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower in short term towards the resistance level 108.85.
Resistance level: 109.30, 109.90
Support level: 108.85, 108.25
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level 0.6880. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the support level 0.6880.
Resistance level: 0.6950, 0.7040
Support level: 0.6880, 0.6805
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.6350. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the support level 0.6350.
Resistance level: 0.6425, 0.6500
Support level: 0.6350, 0.6285
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level 1.3135. MACD which illustrate diminishing bearish momentum suggest the pair to extend its rebound towards the resistance level 1.3185.
Resistance level: 1.3185, 1.3235
Support level: 1.3135, 1.3065
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level 0.9915. However, MACD which illustrate diminishing bullish momentum suggest the pair to experience a technical correction in short term towards the support level 0.9915.
Resistance level: 0.9980, 1.0025
Support level: 0.9915, 0.9845
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level 56.95. However, MACD which illustrate diminishing bullish bias signal suggest the commodity to be traded lower as a technical correction towards the support level 54.80.
Resistance level: 57.35, 59.35
Support level: 54.80, 52.10
GOLD_, H4: Gold price remain traded in a sideway channel while currently testing near the support level 1481.30. However, MACD which illustrate bearish bias signal suggest the commodity to be traded lower after it breaks below the support level.
Resistance level: 1514.60, 1533.35
Support level: 1481.30, 1455.85