9 November 2018 Morning Session Analysis
Fed remains hawkish, dollar propels higher.
US dollar extended its gains on Friday morning after Federal Reserve delivered an upbeat assessment on the economy while signaling that a December interest rate hike remains on track. The dollar index rose 0.66%, last seen around 96.43 during early Asian trading session. As widely expected, the US Federal Reserve left their interest rate unchanged at 2.25% but delivered a positive outlook upon the economy and labor market. While the Fed took note of recent depreciating unemployment and slightly softer GDP for third quarter, the central bank postulate that strong economic activity and household spending is still on tow to support the inflation at around 2%. Thus, they reiterated to continue with gradual rate hike in the future with at least four times next year. On the other hand, pound sterling received some bearish pressure on yesterday following bearish Brexit headlines. According to reports, UK government officials has downplayed rumors that a Brexit agreement was imminent after an article suggests that Britain and EU could seal a divorce deal in the next few days. As of writing, pair of GBP/USD ticked down 0.02% to 1.3066.
As for commodities market, crude oil price extended its losses by 0.05% to $60.71 per barrel. The commodity price received bearish pressure after EIA reported that US weekly crude output has attain a new record high of 11.6 million barrels per day. On the other hand, gold price was down by 0.07% to $1,222.88 a troy ounce following higher prospect towards the next interest rate hike scheduled in December.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 17:30 | GBP – GDP (QoQ) (Q3) | 0.4% | 0.6% | – |
| 17:30 | GBP – Manufacturing Production (MoM) (Sep) | -0.2% | 0.1% | – |
| 17:30 | GBP – Monthly GDP 3M/3M Change | 0.7% | 0.6% | – |
| 21:30 | USD – PPI (MoM) (Oct) | 0.2% | 0.2% | – |
| 23:00 | USD – Michigan Consumer Sentiment (Nov) | 98.6 | 98.0 | – |
| 02:00 | CrudeOIL – US Baker Hughes Oil Rig Count | 874 | – | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower following prior retracement from the higher levels. MACD which illustrate diminishing upward momentum may suggests the index to be traded lower in short-term as technical correction.
Resistance level: 96.60, 97.00
Support level: 96.20, 95.95
GBPUSD, H4: GBPUSD was traded lower following prior breakout from the support level at 1.3100. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the target of 1.3015.
Resistance level: 1.3100, 1.3175
Support level: 1.3015, 1.2955
EURUSD, H1: EURUSD was traded higher following prior rebound from the lower levels. MACD which illustrate diminishing bearish momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1385, 1.1415
Support level: 1.1330, 1.1280
USDJPY, H1: USDJPY was traded lower following prior retrace from the higher levels. MACD which begins to form a death cross signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 114.20, 114.55
Support level: 113.85, 113.30
AUDUSD, H1: AUDUSD was traded lower following prior retracement 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: 0.7275, 0.7315
Support level: 0.7250, 0.7205
NZDUSD, H1: NZDUSD was traded lower following prior retracement while currently testing at the upward trendline. MACD which illustrate bearish signal and momentum suggests the pair to extend its losses after breaking the trendline.
Resistance level: 0.6805, 0.6850
Support level: 0.6735, 0.6700
USDCAD, H4: USDCAD remains traded within an ascending channel while currently testing near 1.3155. MACD which has formed a golden cross signal suggests the pair to extend its gains after breaking the target of 1.3155.
Resistance level: 1.3155, 1.3210
Support level: 1.3115, 1.3080
USDCHF, H4: USDCHF was traded higher following prior breakout from the resistance level near 1.0055. MACD which has formed a golden cross signal suggests the pair to extend its gains after a successful rebound from 1.0055.
Resistance level: 1.0095, 1.0140
Support level: 1.0055, 1.0025
CrudeOIL, H4: Crude oil price extended its losses in tandem with the major bearish trend. MACD which illustrate the formation of death cross signal suggests the commodity price to advance further down, towards the target of 60.00.
Resistance level: 61.05, 62.50
Support level: 60.00 , 58.70
GOLD_, H4: Gold price was traded lower following prior breakout from the upward trendline. MACD which illustrate bearish signal suggests the commodity price to extend its losses in short-term, towards the direction of 1215.95.
Resistance level: 1228.00, 1237.25
Support level: 1215.95, 1206.00