9 August 2019 Morning Session Analysis
Greenback awaits PPI.
US dollar remains traded within a tight range while market participant waits the release of Producer Price Index (PPI) data later tonight. As of writing, the dollar index ticked up 0.03% to 97.42 against other major currencies. Most traders refrained from entering the market with larger position as they gauge the economic performance of United States in order to speculate the degree of next interest rate cut. While recent economic data shows mixed signals, US President Donald Trump’s recent criticism upon the Federal Reserve has sparked higher concern over the independence of the Fed while worrying that they might deliver a rate cut next month as high as 50 basis points. Likewise, the greenback remained unfazed by its recent employment data after Initial Jobless Claims for last week came in lower at 209,000 individuals versus forecast of 215,000 individuals. On the other hand, pair of USD/JPY depreciates by 0.27% to 105.78. The demand for safe-haven Yen remains robust due to ongoing trade conflict in between US and China. Recently, central banks around the world such as New Zealand, India and Thailand had initiated a rate cut in order to support their economy due to potential peril from US-China trade war. As such, most investor’s flock into safe-havens in order to safe-guard their capital from any further losses.
In the commodities market, crude oil price slumped 0.47% to $52.64 per barrel. With recent market sentiment remained fixated upon potential global economic slowdown, most traders forego their bullish position upon oil futures and enters into the safe-haven market. Otherwise, gold price rose 0.19% to $1,504.05 a troy ounce due to higher risk aversion in the FX market.
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, H1: Dollar index remains traded within a sideways channel following prior retracement from the top. Stochastic Oscillator which begins to illustrate retracement signal suggests the index to be traded lower in short-term after closing below the 20-MA line (red).
Resistance level: 97.40, 97.80
Support level: 96.95, 96.30
GBPUSD, H1: GBPUSD remains traded within a descending wedge. MACD which begins to form a bullish signal suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2160, 1.2190
Support level: 1.2135, 1.2090
EURUSD, H1: EURUSD remains traded within a descending triangle formation. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term, towards the direction of 1.1170.
Resistance level: 1.1220, 1.1265
Support level: 1.1170, 1.1115
USDJPY, H1: USDJPY was traded higher following prior rebound from the low level of sideways channel. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term.
Resistance level: 106.50, 107.25
Support level: 105.60, 104.85
AUDUSD, H4: AUDUSD was traded higher following prior breakout from the downward trendline. MACD which illustrate bullish signal suggests the pair to extend its gains after breaking the resistance at 0.6830.
Resistance level: 0.6830, 0.6925
Support level: 0.6760, 0.6675
NZDUSD, H4: NZDUSD was traded higher while currently testing at the resistance of 0.6485. MACD which illustrate bullish signal suggests the pair to extend its gains after breaking the target at 0.6485.
Resistance level: 0.6485, 0.6600
Support level: 0.6400, 0.6260
USDCAD, H4: USDCAD was traded lower while currently testing at the upward trendline. MACD which illustrate bearish signal suggests the pair to extend its losses after breaking the trendline.
Resistance level: 1.3235, 1.3290
Support level: 1.3220, 1.3190
USDCHF, H4: USDCHF was traded lower after closing below the support of 0.9745. MACD which illustrate diminishing upward momentum suggests the pair to extend its losses, towards the direction of 0.9700.
Resistance level: 0.9745, 0.9790
Support level: 0.9700, 0.9650
CrudeOIL, H4: Crude oil price was traded higher while currently testing at the resistance of 53.00. MACD which illustrate bullish signal suggests its price to extend its gains after closing above 53.00.
Resistance level: 53.00, 54.45
Support level: 51.60, 50.55
GOLD_, H1: Gold price was traded higher following prior rebound from the lower levels. However, MACD which illustrate diminished upward momentum suggests its price to experience technical corrections in the short-term.
Resistance level: 1515.00, 1535.35
Support level: 1500.00, 1483.50