12 August 2019 Afternoon Session Analysis
Trade war may drag longer?
Japanese yen remains well in bid during Asian trading session as US-China trade dispute might drag on without any settlements in between both parties. Confusion still lingers in the market after US President Donald Trump said last Friday that he is not ready to make a deal with China although they have scheduled for a September negotiation with Beijing in Washington. For the time being, investors refrain from initiating larger trades while waiting for further signals from US-China trade war as well as economic data from the United States. As such, most investors shifted their portfolio into safe-havens such as Japanese yen in order to safe guard their capital. During Asian session, pair of USD/JPY was quoted down 0.18% to 105.47. On the other hand, pair of GBP/USD recovered its losses by 0.09% to 1.2045. Pound sterling received tremendous selling pressure last Friday following the release of economic data from United Kingdom. For second quarter, its Gross Domestic Product contracted by -0.2%, missing economist forecast to remain unchanged at 0.0%. The data has further deteriorated market sentiment towards Britain as they are highly likely to face a No-Deal Brexit by 31st October 2019.
In the commodities market, crude oil price appreciates by 0.07% to $54.26 per barrel. However, overall outlook on oil price remains bleak due to global economic slowdown and worries upon a possible long-term trade war in between US and China. On the other hand, gold price ticked down by 0.03% to $1,496.49 a troy ounce as market participants wait for more signals from the global financial market.
Today’s Holiday Market Close
Time Market Event
All Day JPY Mountain Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded flat near the support level 97.10. However, MACD which illustrate bearish bias signal suggest the dollar to be traded lower after it breaks below the support level.
Resistance level: 97.90, 98.50
Support level: 97.10, 96.30
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the support level 1.2100. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a short term technical rebound back towards the current resistance level 1.2100.
Resistance level: 1.2100, 1.2245
Support level: 1.1955, 1.1775
EURUSD, H4: EURUSD was traded flat following recent rebound from the MA line 20 (red). MACD which illustrate bullish bias signal suggest the pair to be traded higher towards the resistance level 1.1275.
Resistance level: 1.1275, 1.1340
Support level: 1.1170, 1.1100
USDJPY, H4: USDJPY was traded lower while currently testing the support level 105.45. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses after it breaks below the support level 105.45.
Resistance level: 106.05, 106.90
Support level: 105.45, 104.70
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level 0.6825. MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement towards the support level 0.6760.
Resistance level: 0.6825, 0.6865
Support level: 0.6760, 0.6695
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level 0.6505. MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement towards the support level 0.6430.
Resistance level: 0.6505, 0.6585
Support level: 0.6430, 0.6375
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level 1.3230. MACD which illustrate bearish bias signal suggest the pair to extend its losses towards the support level 1.3145.
Resistance level: 1.3230, 1.3290
Support level: 1.3145, 1.3095
USDCHF, H4: USDCHF was traded lower following while currently testing near the support level 0.9705. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses after it breaks below the support level 0.9705.
Resistance level: 0.9755, 0.9800
Support level: 0.9705, 0.9635
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level 53.05. However, MACD which illustrate diminishing bullish momentum suggest the commodity to undergo a technical correction towards the current support level 53.05.
Resistance level: 55.55, 57.45
Support level: 53.05, 50.45
GOLD_, H4: Gold price was flat while currently testing the support level 1495.60. However, MACD which illustrate bearish bias signal with the recent formation of death cross suggest the commodity to be traded lower after it breaks below the support level.
Resistance level: 1515.55, 1535.00
Support level: 1495.60, 1475.50