9 October 2019 Afternoon Session Analysis
Yen surge amid to risk arise.
Japanese Yen surge amid to the tension for the issue of the Brexit and trade war arise which stoked a shift in sentiment toward safe-haven asset. German Chancellor Angela Merkel claimed that making an agreement with British is effectively impossible, said Downing Street. In addition, according to British official, Merkel told Prime Minister Boris Johnson that Northern Ireland must remain part of the European Union’s customs union if he wants to secure a divorce agreement. Such negative sentiment would provide pessimism prospect for the hope of soft-Brexit and increase the geopolitics risk. In fact, risk appetite ebbed on the caution on an escalating trade war between the United States and China, spurring the demand for safe-haven assets such as Japanese Yen. According to Bloomberg, the United States has broadened its visa restriction on Chinese officials and added more Chinese companies to its trade blacklist, trigger a rise in trade tensions. However, investors would continue to scrutinize for the meeting of top negotiator between Chinese Vice Premier Liu He, US Trade Representative Robert Lightizer and US Treasury Secretary Steven Mnuchin on Thursday. If both sides fail to reach an agreement over the next few days, the Trump administration will likely to impose more tariff on $250 billion worth of Chinese goods. On the other hand, EUR/USD slump yesterday as the geopolitical risk arise amid to the Brexit issues. However, investors would continue to observe the latest update of Brexit to gauge the movement of future government policy and movement of the pair. As of writing, USD/JPY rose 0.09% to 107.15 and EUR/USD rose 0.10% to 1.0963.
In the commodities market, crude oil price slump 0.30% to $52.42 per barrel amid to the prospect of the United States and China striking a trade deal in talks this week dimmed, raising uncertainties for global economic growth and oil demand. On the other hand, gold price rose 0.02% to $1505.63 per troy ounces amid to weaker greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
2.00 USD FOMC Meeting Minutes
(10th Oct)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 22:00 | USD – JOLTs Job Opening (Aug) | 7.217M | 7.191M | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 3.100M | 1.413M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 98.85. However, MACD which illustrate bullish signal suggests the index to undergo short term technical correction toward the resistance level at 98.85.
Resistance level: 98.85, 99.20
Support level: 98.60, 98.20
GBPUSD, Daily: GBPUSD was traded lower following prior breakout below the previous support level at 1.2325. MACD which illustrate bearish signal suggests the pair to extend its losses toward the support level at 1.2170.
Resistance level: 1.2325, 1.2395
Support level: 1.2165, 1.2020
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.0965. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses after successfully breakout below the support level at 1.0960.
Resistance level: 1.1125, 1.1300
Support level: 1.0960, 1.0855
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 107.00. MACD which illustrate bullish signal suggests the pair to advance further up toward the direction of 107.80.
Resistance level: 107.80, 108.45
Support level: 107.00, 106.65
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.6745. MACD which illustrate diminishing bearish momentum signal suggests the pair to extend its gains after successfully breakout above the resistance level at 0.6745.
Resistance level: 0.6745, 0.6795
Support level: 0.6695, 0.6635
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the channel’s bottom level. MACD which illustrate diminished downward momentum suggests the pair to extend its rebound toward the resistance level at 0.6325.
Resistance level: 0.6325, 0.6365
Support level: 0.6285, 0.6255
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.3335. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 1.3275.
Resistance level: 1.3335, 1.3395
Support level: 1.3275, 1.3210
USDCHF, Daily: USDCHF was traded lower while currently testing the 20 moving average line (Red). MACD which illustrate bearish momentum signal suggest the pair to extend its losses after successfully breakout below the 20 moving average line (Red).
Resistance level: 0.9945, 1.0005
Support level: 0.9885, 0.9810
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support level at 51.85. MACD which illustrate upward momentum suggests its price to be traded higher toward the direction of 53.55.
Resistance level: 53.55, 54.65
Support level: 51.85, 51.15
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1504.00. MACD which illustrate bullish momentum and the formation of golden cross suggest the commodity to extend its gains toward the resistance level at 1520.25.
Resistance level: 1520.25, 1535.25
Support level: 1485.65, 1460.00