9 August 2019 Afternoon Session Analysis
Dollar remains pressured amid renewed jitters on Huawei.
Dollar index which measured against a basket of six major currency pairs have fell as U.S plans to delay decision on U.S companies conducting businesses with China’s Huawei Technologies. According to reports from Bloomberg, the telecommunication giant Huawei have been accused of espionage and stealing intellectual property. According to recent report, the US administration has released an early publication of a rule that will ban all new contracts or buying of equipment from Huawei, ZTE and a number of other Chinese companies which will starting to take effect from 13 August 2019. Besides that, the law also set a deadline of August 2020 for a broader ban on federal contractors doing business with Huawei or the covered firms. The news have triggered a series of risk-off trades, boosting safe-haven asset like Yen and also dragged the greenback sentiment lower. As the lack of economic docket from U.S counterpart, investors are now eying on the next PPI data and further developments between U.S and China to gauge further sentiment for the dollar. Greenback fell 0.06% to 97.30 while USD/JPY also slips 0.05% to 105.95 at the time of writing.
In the commodities market, crude oil price fell 0.53% to $52.59 per barrel as of writing. Market remains pressured by fears of U.S-Sino trade tension could lead to a global slowdown and a declining demand for the commodity. However, the losses are limited by latest reports stated that the world’s biggest oil exporter Saudi Arabia had called other producers to discuss the recent slide in crude prices. Next, gold price gains 0.19% to $1504.11 a troy ounce at the time of writing following renewed tensions boosted risk-off sentiment.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16:00 CrudeOIL IEA Monthly Report
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – GDP (QoQ) (Q2) | 0.5% | 0.0% | – |
| 16:30 | GBP – Manufacturing Production (MoM) (Jun) | 1.4% | -0.1% | – |
| 20:30 | USD – PPI (MoM) (Jul) | 0.1% | 0.2% | – |
| 20:30 | CAD – Employment Change (Jul) | -2.2K | 12.5K | – |
| 01:00
(10th) |
CrudeOIL – US Baker Hughes Oil Rig Count | 770 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from 20 moving average line (Red). MACD which illustrate diminishing bullish momentum suggest the dollar to extend its retracement toward the support level at 97.10.
Resistance level: 97.50, 98.00
Support level: 97.10, 96.80
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the channel’s bottom level. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.2090.
Resistance level: 1.2155, 1.2220
Support level: 1.2090, 1.1990
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.1185. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains towards the resistance level at 1.1240.
Resistance level: 1.1240, 1.1280
Support level: 1.1185, 1.1155
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 106.05. However, MACD which illustrate persistent bullish momentum signal suggest the pair to undergo short term technical correction toward the resistance level at 106.05.
Resistance level: 106.05, 107.75
Support level: 105.60, 105.30
AUDUSD, H4: AUDUSD was traded flat near the 50 moving average line (Blue). MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.6765.
Resistance level: 0.6825, 0.6865
Support level: 0.6765, 0.6695
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.6490. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains after successfully breakout above the resistance level at 0.6490.
Resistance level: 0.6490, 0.6555
Support level: 0.6435, 0.6395
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level and the upward trend line. MACD which illustrate bearish bias signal suggest the pair to extend its losses towards the support level 1.3140.
Resistance level: 1.3220, 1.3275
Support level: 1.3140, 1.3095
USDCHF, H1: USDCHF was traded lower following prior breakout below the previous support level at 0.9755. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses toward the support level at 0.9705.
Resistance level: 0.9755, 0.9790
Support level: 0.9705, 0.9645
CrudeOIL, H1: Crude oil price was traded lower following prior retracement from the 50 moving average line (Blue). MACD which illustrate diminishing bullish momentum signal suggest the commodity to extend its losses toward the support level at 51.15.
Resistance level: 53.10, 54.65
Support level: 51.15, 50.25
GOLD_, H1: Gold price was traded higher following prior rebound near the support level at 1495.00. MACD which illustrate bullish momentum suggest the commodity to extend its gains toward the resistance level at 1515.00.
Resistance level: 1515.00, 1530.00
Support level: 1495.00, 1477.90