8 January 2020 Afternoon Session Analysis
Safe-haven rose sharply following missile attack.
Market demand for safe-haven assets skyrocketed this morning after Iran launches a rocket attack upon a base hosting US troops in Iraq, heightening tension in between both countries. Investor’s fear over a full-blown war breaking out in the Middle East prompted a large selloff upon risky assets and rushed into safety. According to Reuters, rockets were fired at multiple targets including Iraq’s al Asad airbase which hosts US forces. Pentagon said that the missiles were launched from Iran while Iranian news agency Mehr reported that the attack was launched by Iran’s Islamic Revolutionary Guard Corps. The attack happened a few hours after the funeral service for Iran military commander which were killed by US drone strike at Baghdad International Airport last Friday. Subsequently, White House spokeswoman Stephanie Grisham confirmed that US President Donald Trump was briefed with regards to the attack and they are currently monitoring the situation. Following the missile strike, equities across the globe experienced significant selloff as traders shifts their portfolio into safe-haven such as Japanese Yen, Swiss Franc and gold. As of writing, pair of USD/JPY slumped 0.24% to 108.16 while USD/CHF ticked down 0.03% to 0.9700.
In the commodities market, crude oil price surged more than 2.23% to $64.14 per barrel. Oil futures rose sharply after US said that its forces in Iraq was attacked by Iranian ballistic missiles that raised the prospect of regional conflagration which could lead to oil supply disruption. Similarly, gold price skyrocketed 0.95% to $1,588.70 a troy ounce following higher risk aversion in the market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21.15 | USD – ADP Nonfarm Employment Change (Dec) | 67K | 160K | – |
| 23.30 | CrudeOIL – Crude Oil Inventories | -11.463M | -3.572M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 96.65. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward support level at 96.15.
Resistance level: 96.65, 97.20
Support level: 96.15, 95.40
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level at 1.3105. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.3175
Resistance level: 1.3175, 1.3225
Support level: 1.3105, 1.3055
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.1140. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gain towards resistance level at 1.1195.
Resistance level: 1.1195, 1.1225
Support level: 1.1140, 1.1105
USDJPY, Daily: USDJPY was traded higher following prior rebound from the support level at 107.70. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 108.75.
Resistance level: 108.75, 109.65
Support level: 107.70, 106.85
AUDUSD, Daily: AUDUSD was traded higher following prior rebound from the support level at 0.6850. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6915, 0.6965
Support level: 0.6850, 0.6810
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.6620. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.6675.
Resistance level: 0.6675, 0.6735
Support level: 0.6620, 0.6560
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.3045. However, MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.2965.
Resistance level: 1.3045, 1.3110
Support level: 1.2965, 1.2905
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9730. MACD which illustrated diminishing bullish momentum suggest the pair to extend its loses toward support level at 0.9670.
Resistance level: 0.9730, 0.9790
Support level: 0.9670, 0.9585
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 64.55. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 64.55, 66.40
Support level: 62.45, 60.75
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1608.90. However, MACD which illustrated increasing bullish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1608.90, 1629.75
Support level: 1582.00, 1552.15