8 October 2018 Afternoon Session Analysis
Dollar edges higher amid Friday’s economic data.
Greenback managed to recover part of its losses from last Friday’s Nonfarm Payrolls (NFP) data by 0.13% to 95.38 amid investors reaction towards better US unemployment rate. Following last week releasement of poor NFP data was the US Unemployment Rate data which had an actual reading of 3.7%, 0.1% lower than the forecasted data of 3.8%. The lower than expect unemployment rate was taken as a positive sentiment by investors as the data indicates a healthier US employment status. In other news, the pair of GBP/USD was traded lower by 0.11% to 1.3100 at early European trading session after surging up by 100 pips amid poor NFP data which sent the dollar falling from its 1-month high on Friday.
As for commodities, crude oil price plunged 0.60% to $73.85 per barrel amid reports from US officials where US may grant waivers for those who put efforts to reduce their crude imports from Iran. Moreover, news on Saudi Arabia’s action to stabilize the decreased of supply from Iran also created negative sentiment for the crude oil market. On the other hand, gold price fell 0.50% to $1,196.60 a troy ounce due to stronger dollar.
Today’s Holiday Market Close
Time Market Event
All Day CAD Canada – Thanksgiving Day
All Day JPY Japan – Health-Sports Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economy Data
N/A
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher following prior rebound from the support level 95.20. MACD which illustrate bullish signal and the formation of golden cross suggest the dollar to extend its gains towards the resistance level 95.70.
Resistance level: 95.70, 96.05
Support level: 95.20, 94.55
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level near 1.3130. MACD which illustrate bearish momentum and the formation of a death cross suggest the pair to extend its losses towards the psychological level 1.3040.
Resistance level: 1.3130, 1.3185
Support level: 1.3040, 1.2980
EURUSD, H1: EURUSD was traded lower following prior breakout below the previous support level 1.1510. Recent price action and MACD which display bearish bias and the formation of a death cross suggest the pair to extend its losses towards the support level 1.1465.
Resistance level: 1.1510, 1.1570
Support level: 1.1465, 1.1395
USDJPY, H1: USDJPY was traded higher following prior rebound from the support level 113.55. MACD which illustrate bullish momentum suggest the pair to extend its gains towards the resistance level 114.00.
Resistance level: 114.00, 114.50
Support level: 113.55, 113.05
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level 0.7040. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains towards the resistance level 0.7085.
Resistance level: 0.7090, 0.7125
Support level: 0.7040, 0.7010
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level 0.6460. MACD which illustrate diminishing bearish momentum suggest the pair to undergo short-term technical correction towards the resistance level 0.6460.
Resistance level: 0.6460, 0.6505
Support level: 0.6400, 0.6375
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level 1.2955. Recent price movement and MACD which illustrate persistent bullish momentum suggest the pair to extend its gains towards the resistance level 1.3045.
Resistance level: 1.3045, 1.3120
Support level: 1.2955, 1.2905
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level 0.9940. MACD which illustrate bearish momentum suggest the pair to extend its retracement towards the support level 0.9875.
Resistance level: 0.9940, 0.9980
Support level: 0.9875, 0.9815
CrudeOIL, H4: Crude oil price was traded lower while currently testing near the support level 73.55. MACD which display persistent bearish momentum suggest the commodity to extend its losses after a breakout below the support level.
Resistance level: 75.00, 76.70
Support level: 73.55, 71.90
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level 1197.90. MACD which illustrate bearish momentum and the formation of a death cross suggest the commodity to extend its losses towards the support level 1191.10.
Resistance level: 1197.90, 1203.30
Support level: 1191.10, 1185.35
Highlighted economy data and events for the week: October 8 – 12
| Monday, October 8 |
Data EUR – German Industrial Production (MoM) (Aug)
Events N/A
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| Tuesday, October 9 |
Data EUR – German Trade Balance (Aug)
Events N/A
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| Wednesday, October 10 |
Data CrudeOIL – API Weekly Crude Oil Stock GBP – GDP (MoM) GBP – Manufacturing Production (MoM) (Aug) USD – PPI (MoM) (Sep)
Events N/A
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| Thursday, October 11 |
Data USD – Core CPI (MoM) (Sep) CrudeOIL – Crude Oil Inventories
Events CrudeOIL – OPEC Monthly Report EUR – ECB Publishes Account of Monetary Policy Meeting
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Friday, October 12
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Data EUR – Industrial Production (MoM) (Aug) EUR – German CPI (MoM) (Sep) USD – Michigan Consumer Sentiment (Oct)
Events CrudeOIL – IEA Monthly Report
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