9 October 2018 Morning Session Analysis
Japanese Yen propels as sentiment plunges.
US dollar was traded flat on Tuesday after undergoing seesawed trading due to a change of sentiment in the global financial market. On yesterday, safe-haven Japanese Yen regained large buyback across the board as People’s Bank of China announced to aid their economy by slashing reserve ration while allowing the Yuan to depreciate till its lowest level since mid-August. Such moves have sparked risk-aversion among investors while at the same time, equities in Asia, Europe and US falls into a sea of red. In the other region, Italy political conundrum continues to weigh on investor’s sentiment after the government insisted that it would not backout from its deficit spending plans despite European Commission’s disapproval. Prior, Italy’s government has proposed their 2019 fiscal budget to target at around 2.4% of their Gross Domestic Product (GDP). As of writing, dollar index was flat at around 95.37, pair of USD/JPY extended its losses by 0.13% to 113.08 while pair of EUR/USD ticked down 0.02% to 1.1490.
As for commodities market, crude oil price recovered its losses by 0.16% to $74.48 per barrel. The commodity suffered from a deep loss on yesterday following speculation that US may not enact full sanction upon Iran by allowing the country to sell small amount of crude oil as compared to its original zero-exports target. Otherwise, gold price appreciates by 0.23% to $1,190.43 a troy ounce as investors initiate a buyback from a lower level.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | EUR – German Trade Balance (Aug) | 15.8B | 16.4B | – |
| 20:15 | CAD – Housing Starts (Sep) | 201.0K | 210.0K | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index remains traded within a narrowing triangle while currently testing at the bottom level. Due to the lack of signal from MACD and price action, it is suggested to wait for a breakout to occur before entering the market.
Resistance level: 95.50, 96.00
Support level: 95.00, 94.65
GBPUSD, H1: GBPUSD remains traded within a narrowing triangle while currently testing at the top level. Due to the lack of signal from MACD and price action, it is suggested to wait for a breakout to occur before entering the market.
Resistance level: 1.3100, 1.3145
Support level: 1.3055, 1.2985
EURUSD, H1: EURUSD remains traded within a descending triangle while currently testing near the target of 1.1495. MACD which illustrate bullish signal may suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1495, 1.1550
Support level: 1.1460, 1.1420
USDJPY, H4: USDJPY extended its losses following prior breakout from the support of 113.40. MACD which continues to illustrate bearish signal suggests the pair to advance further down, towards the target at 112.70.
Resistance level: 113.40, 114.00
Support level: 112.70, 112.15
AUDUSD, H4: AUDUSD was traded higher following prior rebound while currently testing near the target of 0.7090. MACD which illustrate bullish signal suggests the pair to extend its gains after closing above the resistance level of 0.7090.
Resistance level: 0.7090, 0.7130
Support level: 0.7025, 0.6960
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance of 0.6450. MACD which has formed a golden cross signal suggests the pair to extend its gains after closing above the target of 0.6450.
Resistance level: 0.6450, 0.6490
Support level: 0.6405, 0.6370
USDCAD, H4: USDCAD was traded lower following prior retracement from the downward trendline. MACD which begins to form a death cross signal suggests the pair to extend its losses after closing below 1.2955.
Resistance level: 1.3010, 1.3050
Support level: 1.2955, 1.2900
USDCHF, H1: USDCHF remains traded within a sideways channel while currently testing at the mid-level. Due to the lack of signal from MACD and price action, it is suggested to wait for a breakout to occur before entering the market.
Resistance level: 0.9940, 0.9980
Support level: 0.9905, 0.9885
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support level at 73.40. MACD which illustrate bullish signal suggests the commodity price to be traded higher in short-term as technical correction.
Resistance level: 74.45, 75.60
Support level: 73.40, 72.50
GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1184.00. MACD which illustrate the formation of golden cross may suggests the commodity price to be traded higher in short-term as technical correction.
Resistance level: 1192.00, 1202.00
Support level: 1184.00, 1177.00