7 February 2019 Afternoon Session Analysis
Kiwi flops over soft employment data.
New Zealand dollar received larger selloff in the FX market following the release of bearish economic data. Pair of NZD/USD was quoted down by 0.19% to 0.6760 as of writing. According to Statistics New Zealand, Employment Change for the fourth quarter came in at only 0.1%, lower than economist forecast for a reading of 0.3%. The disappointing data has reduced market optimism towards the region after the same data posted a rather bullish reading on the previous quarter. In addition, the currency received additional bearish selloff after unemployment rate for the fourth quarter rose to 4.3%, missing economist forecast for a rise up to 4.1%. On the other hand, the dollar index continued its bullish momentum after rising more than 0.05% to 96.15 against a basket of six major currencies. For the time being, the US dollar was well in bid following selloff across the board on currencies such as Euro, Australian dollar and Canadian dollar.
On the other hand, crude oil price slumped 0.28% to $53.86 per barrel. Oil prices dips further on Thursday as production levels in the US held at record levels, scaling down market positivism towards a resolution in global supply glut. Likewise, gold price was down by 0.19% to $1,304.11 a troy ounce as US dollar extend its gains since yesterday.
Today’s Holiday Market Close
Time Market Event
All Day HKD Hong Kong – Lunar New Year
All Day CNY China – Spring Festival
Today’s Highlight Events
Time Market Event
17:00 EUR ECB Economic Bulletin
18:00 EUR EU Economic Forecast
20:00 GBP MPC Inflation Report
20:00 GBP BoE MPC Meeting Minutes
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | EUR – German Industrial Production (MoM) (Dec) | -1.9% | 0.7% | – |
| 20:00 | GBP – BoE Interest Rate Decision (Feb) | 0.75% | 0.75% | – |
| 21:30 | USD – Initial Jobless Claims | 253K | 221K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior closure above 96.00. MACD which illustrate bullish signal suggests the index to advance further up, towards the direction of resistance level near 96.30.
Resistance level: 96.30, 96.65
Support level: 96.00, 95.50
GBPUSD, Daily: GBPUSD was traded lower while currently testing near the support of 1.2930. MACD which begins to form a death cross signal suggests the pair to extend its losses after closing below the target of 1.2930.
Resistance level: 1.2990, 1.3060
Support level: 1.2930, 1.2855
EURUSD, H4: EURUSD was traded lower while currently testing near the support level of 1.1355. MACD which illustrate persistent bearish signal suggests the pair to advance further down after closing below 1.1355.
Resistance level: 1.1415, 1.1445
Support level: 1.1355, 1.1300
USDJPY, H1: USDJPY remains traded within a sideways channel while currently testing at the top level. Due to the lack of signal from MACD and price action, it is suggested to wait for a breakout before entering the market.
Resistance level: 110.00, 110.50.
Support level: 109.55, 108.95
AUDUSD, H4: AUDUSD extended its losses after closing below 0.7170. MACD which illustrate bearish signal suggests the pair to advance further down, towards the direction of 0.7070.
Resistance level: 0.7170, 0.7275
Support level: 0.7070, 0.7015
NZDUSD, H4: NZDUSD was traded lower following prior closure below the support level at 0.6780. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 0.6710.
Resistance level: 0.6780, 0.6820
Support level: 0.6710, 0.6645
USDCAD, H4: USDCAD was traded higher following prior closure above the resistance of 1.3220. MACD which illustrate bullish signal suggests the pair to extend its gains after closing above the target at 1.3280.
Resistance level: 1.3280, 1.3325
Support level: 1.3220, 1.3175
USDCHF, H1: USDCHF was traded higher following prior closure above the resistance at 1.0000. However, MACD which illustrate diminished upward momentum may suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.0040, 1.0080
Support level: 1.0000, 0.9970
CrudeOIL, H1: Crude oil price remains traded within a descending channel following prior retrace from the upper level. MACD which illustrate diminished upward momentum suggests its prices to be traded lower, after closing below 53.70.
Resistance level: 54.40, 55.20
Support level: 53.70, 52.80
GOLD_, H4: Gold price was traded lower following prior closure below 1305.40. MACD which illustrate persistent downward signal suggests its prices to extend its losses towards the direction of 1295.55.
Resistance level: 1305.40, 1313.80
Support level: 1295.55, 1286.75