7 October 2019 Morning Session Analysis
Dollar lingered amid mixed data.
Dollar index which gauge its value against a basket of six major currencies hovered near 98.50 following mixed economic data been announced on last Friday. According to Bureau of Labor Statistics, U.S. Nonfarm Payrolls data came in at 136K, lower than economist forecast and previous reading of 136K and 168K respectively while indicating US labor market has weaken. However, bearish momentum exerted from downbeat NFP data limited by optimistic unemployment rate in US where the data showed a reading of 3.5%, missing the economist forecast and previous reading at 3.7%. A significant drop in US unemployment rate has recorded a 50 years low level while easing the fears about a possible recession amid trade war between US and China, while showing US economy is in the midst of recovery stage. On the other hand, the pair of USD/CAD rose amid poor Canada Ivey PMI data triggered bearish momentum and continue weighted on Canadian dollar. According to the data, Canada Ivey PMI came in at 48.7, far weaker than last month reading at 60.6. The pace of economic activity in Canada slowed sharply which seemingly caused by the recent significant drop in crude oil price as Canada highly dependent on exporting crude oil. As of writing, dollar index inched down 0.01% to 98.45 and USD/CAD quoted up 0.03% to 1.3320.
In the commodities market, the crude oil price dropped 0.64% to $52.60 per barrel amid investor fearing over the global growth slowdown while pegging their hopes on positive progress in US trade talk which will be held on end of this week. On the other hand, gold price appreciated by 0.20% to $1507.80 per troy ounces amid weakening of greenback.
Today’s Holiday Market Close
Time Market Event
All Day CNY China – National Day
Today’s Highlight Events
Time Market Event
01:00 USD Fed Chair Powell Speaks
(8th October)
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing near the support level 98.35. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the support level 98.35.
Resistance level: 98.75, 99.20
Support level: 98.35, 97.70
GBPUSD, H4: GBPUSD remain traded in a sideway channel following recent retracement from the resistance level 1.2390. However, MACD which illustrate bearish bias signal suggest the pair to extend its retracement in short term towards the support level 1.2235.
Resistance level: 1.2390, 1.2500
Support level: 1.2235, 1.2075
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level 1.0965. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a short term technical correction towards the current support level 1.0965.
Resistance level: 1.1020, 1.1070
Support level: 1.0965, 1.0915
USDJPY, H4: USDJPY was traded flat near the resistance level 107.00. However, MACD which illustrate bullish bias signal with the starting formation of golden cross suggest the pair to be traded higher after it breaks above the resistance level.
Resistance level: 107.00, 107.55
Support level: 106.45, 105.80
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level 0.6745. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.6805, 0.6850
Support level: 0.6745, 0.6690
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level 0.6325. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement towards the support level 0.6270.
Resistance level: 0.6325, 0.6355
Support level: 0.6270, 0.6235
USDCAD, H4: USDCAD was traded lower while currently testing near the support level 1.3300. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.3365, 1.3425
Support level: 1.3300, 1.3235
USDCHF, H4: USDCHF was traded lower while currently testing near the support level 0.9940. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a technical correction in short term towards the resistance level 1.0005.
Resistance level: 1.0005, 1.0095
Support level: 0.9940, 0.9855
CrudeOIL, H4: Crude oil price traded flat near the resistance level. However, MACD which indicate diminishing bullish momentum suggest the commodity to be traded lower towards the support level 50.50.
Resistance level: 53.00, 55.30
Support level: 50.50, 48.35
GOLD_, H4: Gold price was traded flat near the resistance level 1513.35. However, MACD which display bearish bias signal suggest the commodity to be traded lower in short term towards the support level 1487.35.
Resistance level: 1513.35, 1535.10
Support level: 1487.35, 1452.15