8 October 2018 Morning Session Analysis
Greenback slumped as NFP mixed.
US dollar extended its back leg on Monday following mixed US employment data which were released last Friday. The dollar index was quoted down 0.03%, last seen around 95.22. Last Friday, US Labor Department reported that the rate of job creation has slowed down sharply in September, likely due to the effects of Hurricane Florence. According to the report, the number of Nonfarm Payrolls generated came in at 134,000 jobs, its lowest level in a year while missing economist forecast for a reading of 185,000. Similarly, annual wage growth also experienced some easing for last month, came in at only 2.8% versus prior month of 2.9%. However, overall unemployment rate continued its depreciation, falling down to a near 49-year lows of 3.7% from previous reading of 3.9%. The better-than-expected unemployment data has helped to ease and limit the selloffs on greenback. On the other hand, investors will now await China’s decision to follow an easing in domestic policy by allowing its yuan to fall after the central bank slashed reserve ratio last weekend.
As for commodities, crude oil price slumped 0.46% to $74.16 per barrel this morning. Oil prices was under pressure after China central bank announced stimulus last weekend, signaling a bleak outlook ahead for the world’s largest economy. A bleak outlook from the central bank may reflect lower demand for oil from the country in the future. On the other hand, gold price notched up 0.06% to $1,203.43 a troy ounce due to weaker 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
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | EUR – German Industrial Production (MoM) (Aug) | -1.1% | 0.4% | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index remains traded within a symmetrical triangle while currently testing at the bottom level. Due to the lack of signal from MACD and recent price action, it is suggested to wait for a breakout from either side of the triangle before entering the market.
Resistance level: 95.50, 96.00
Support level: 95.00, 94.65
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level near 1.3145. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3145, 1.3200
Support level: 1.3100, 1.3055
EURUSD, H1: EURUSD remains traded within a tight range following prior retracement from the top. MACD which begins to form a death cross signal suggests the pair to be traded lower in short-term after closing below the 20-MA line (red).
Resistance level: 1.1550, 1.1605
Support level: 1.1495, 1.1445
USDJPY, H1: USDJPY was traded higher following prior breakout from the top level of descending triangle. MACD which illustrate the formation of golden cross suggests the pair to extend its gains, towards the resistance level near 114.00.
Resistance level: 114.00, 114.30
Support level: 113.60, 113.30
AUDUSD, H4: AUDUSD extended its losses in tandem with its overall bearish trending. However, MACD which begins to form a golden cross signal suggests the pair to be traded higher in short-term as technical correction before advancing further down.
Resistance level: 0.7090, 0.7130
Support level: 0.7025, 0.6960
NZDUSD, H1: NZDUSD was traded lower following prior breakout from the support level at 0.6450. MACD which has formed a death cross signal suggests the pair to extend its losses towards the support level near 0.6405.
Resistance level: 0.6450, 0.6490
Support level: 0.6405, 0.6370
USDCAD, H4: USDCAD was traded higher following prior rebound near the support level of 1.2900. MACD which continues to illustrate bullish signal suggests the pair to extend its gains after breaking the resistance at 1.2955.
Resistance level: 1.2955, 1.3010
Support level: 1.2900, 1.2860
USDCHF, H1: USDCHF was traded higher following prior rebound from the upward trendline. MACD which illustrate diminishing downward momentum suggests the pair to extend its gains after closing above the 20-MA line (red).
Resistance level: 0.9940, 0.9980
Support level: 0.9885, 0.9850
CrudeOIL, H1: Crude oil price extended its losses following prior breakout from the support level of 74.45. MACD which formed a death cross signal suggests the pair to advance further down, towards the target of 73.40.
Resistance level: 74.45, 75.60
Support level: 73.40, 72.50
GOLD_, H1: Gold price remains traded within a narrowing triangle while currently testing at the bottom level. MACD which has formed a death cross signal suggests the commodity price to advance further down after breaking the bottom level of the triangle.
Resistance level: 1202.00, 1210.60
Support level: 1192.00, 1184.00