10 October 2019 Afternoon Session Analysis
Greenback hovered while investor eyes on trade talk.
Dollar index which gauge its value against a basket of six major currencies lingered around 98.65 level amid recent news showed that Trump administration plan to approve some of the domestic companies in US to continue supply non-sensitive goods to the telecom giant in China, Huawei. Earlier this year, Trump blacklisted Huawei companies and restricted US companies to deal with Huawei, acting as a retaliation to China and lifted up the tension between two countries. Trump’s green light to issue licenses for business trading with China has cool down the recent escalation of trade dispute. However, the gains of greenback limited after Donald Trump revealed that US delegation will bring up the China currencies depreciation issue onto the table to discuss and expect it can be involved in partial deal with China. Therefore, investors will continue eye on the representative level trade talk which starting from 11th October which last for two days. As of writing, dollar index inched down 0.10% to 98.70. On the other hand, the pair of USD/CAD plunged 0.12% to 1.3315 amid escalation of geopolitical tension in Middle East region. Early morning today, Turkey launched an offensive attack against Kurdish fighters in Syria and believingly that oil supplies will be disrupted, eventually benefited Canadian dollar as Canada is one of the largest crude oil exporter in global.
In the commodities market, crude oil price quoted down 0.38% to $52.45 per barrel as EIA data showed a stockpile in US inventories level. According to EIA data, US inventories has increased 2.927M, surprisingly higher than economist forecast of 1.413M. However, recent military operation launched by Turkey limited the losses of crude oil prices. Besides, gold price rose 0.23% to $1509.00 a troy ounce amid heightening of geopolitical tension.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
17:20 GBP BoE Gov Carney Speaks
19:00 CrudeOIL OPEC Monthly Report
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – GDP (QoQ) | 0.0% | 0.1% | – |
| 16:30 | GBP – Manufacturing Production (MoM) (Aug) | 0.35 | 0.1% | – |
| 20:30 | USD – Core CPI (MoM) (Sep) | 0.3% | 0.2% | – |
| 20:30 | USD – Initial Jobless Claims | 219K | 215K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 98.75. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 98.60.
Resistance level: 98.75, 98.90
Support level: 98.60, 98.35
GBPUSD, Daily: GBPUSD was traded lower following prior retracement from its previous support level at 1.2270. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2210.
Resistance level: 1.2270, 1.2390
Support level: 1.2210, 1.2010
EURUSD, H4: EURUSD was traded higher while currently testing at the resistance level at 1.0995. MACD which illustrated increasing bullish momentum suggest the pair to be traded higher after it successfully breakout above the resistance level.
Resistance level: 1.0995, 1.1020
Support level: 1.0965, 1.0940
USDJPY, H4: USDJPY was traded higher following prior rebound from the previous resistance level at 107.35. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 107.55, 107.70
Support level: 107.35, 107.20
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.6740. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.6765.
Resistance level: 0.6765, 0.6795
Support level: 0.6740, 0.6715
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.6285. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6320.
Resistance level: 0.6320, 0.6340
Support level: 0.6285, 0.6275
USDCAD, H4: USDCAD was traded lower following retracement from the resistance level at 1.3335. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3335, 1.3360
Support level: 1.3290, 1.3255
USDCHF, H4: USDCHF was traded higher following prior rebound from its support level at 0.9935. MACD which illustrated increasing bullish momentum suggest the pair to extend its gain toward the resistance level at 0.9965.
Resistance level: 0.9965, 0.9985
Support level: 0.9935, 0.9915
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the previous resistance level at 52.30. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gain toward resistance level at 52.80.
Resistance level: 52.80, 53.25
Support level: 52.30, 51.85
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1518.85. MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower toward support level at 1502.80.
Resistance level: 1518.85, 1532.85
Support level: 1502.80, 1489.20