10 October 2018 Morning Session Analysis
Sterling rose over the backdrop of Brexit progress.
Greenback opened lower during Wednesday’s Asian trading session following a sharp rally on pound sterling over renewed hopes for a breakthrough during Brexit talks. Overnight, pound sterling received larger buyback from investors as they cheered over a report that suggests both UK and EU are making progress in Brexit talks just weeks before the crucial EU summit bound to be held later in October. Both countries were reportedly close to reaching a deal over Brexit divorce terms as soon as Monday while some indifferences on the Ireland border remained as the main issue. As for now, UK and EU are aiming to draft an outline of future trade relationship by coming November. As of writing, dollar index was down 0.09% to 95.30 while GBP/USD rose 0.09% to 1.3156. On the other hand, pair of EUR/USD recovered its losses by 0.14% to 1.1506 this morning. However, any substantial gains on the pair were limited as Italy’s budget conundrum with the European Commission continues to haunt market participants.
In the commodities section, crude oil price rose 0.11% to $74.71 this morning while shrugging off two-days of losses. The commodities received some support following investor’s worries of a hurricane swirling towards US Gulf Coast while data showed that Iranian crude exports were down by more than half prior to sanction enactment. Otherwise, gold price ticked up 0.01% to $1,189.93 a troy ounce following weaker US dollar.
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 | Market & Data | Previous | Forecast | Actual |
| 16:30 | GBP – GDP (MoM) | 0.3% | 0.1% | – |
| 16:30 | GBP – Manufacturing Production (MoM) (Aug) | -0.2% | 0.1% | – |
| 20:30 | USD – PPI (MoM) (Sep) | -0.1% | 0.2% | – |
| 04:30 (11th) | CrudeOIL – API Weekly Crude Oil Stock | 0.907M | – | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower following prior breakout from the bottom level of ascending channel. MACD which illustrate formation of bearish signal suggests the index to extend its losses towards 95.00.
Resistance level: 95.50, 96.00
Support level: 95.00, 94.65
GBPUSD, H4: GBPUSD extended gains following prior breakout from the resistance level at 1.3145. MACD which has formed a golden cross signal suggests the pair to advance further up, towards the direction of 1.3200.
Resistance level: 1.3200, 1.3285
Support level: 1.3145, 1.3100
EURUSD, H1: EURUSD was traded higher while currently testing near the downward trendline. Although MACD illustrate bullish signal, a breakout from the trendline is required to attain further upside bias confirmation.
Resistance level: 1.1550, 1.1605
Support level: 1.1495, 1.1460
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance at 113.40. MACD which continues to illustrate bearish signal suggests the pair to advance further down, towards the direction of 112.70.
Resistance level: 113.05, 113.40
Support level: 112.70, 112.15
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the bottom level. MACD which has formed a golden cross signal suggests the pair to extend its gains after closing above the threshold of 0.7130.
Resistance level: 0.7130, 0.7200
Support level: 0.7090, 0.7045
NZDUSD, H1: NZDUSD was traded higher following prior rebound from the support level of 0.6430. MACD which illustrate the formation of bullish signal suggests the pair to extend its gains after breaking the resistance level of 0.6490.
Resistance level: 0.6490, 0.6540
Support level: 0.6450, 0.6430
USDCAD, H4: USDCAD was traded lower following prior retracement from the downward trendline. MACD which has formed a death cross signal suggests the pair to extend its losses in short-term, towards the direction of 1.2900.
Resistance level: 1.2955, 1.3010
Support level: 1.2900, 1.2860
USDCHF, H1: USDCHF remains traded within a sideways channel while currently testing at the bottom level. Although MACD illustrate bearish signal, a break below the target of 0.9905 is required to attain further confirmation.
Resistance level: 0.9940, 0.9980
Support level: 0.9905, 0.9885
CrudeOIL, H1: Crude oil price was traded flat within a tight range for the time being. 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: 75.00, 75.60
Support level: 74.45, 73.40
GOLD_, H1: Gold price was traded higher following prior rebound from the support level near 1184.00. MACD which illustrate the formation of positive divergence suggests the pair to extend its gains after breaking the resistance near 1192.00.
Resistance level: 1192.00, 1202.00
Support level: 1184.00, 1177.00